Although the price of Solana (SOL) is one of the fastest growing in the last two months, it is in danger of falling by up to 95 percent.
Solana is a public blockchain platform that has smart contract functionality, which is widely used by developers to build decentralized applications (dApps).
Among the top 20 cryptocurrencies, Solana's price performance has been satisfactory, growing by around 75 percent in the last two months. However, this seems still not enough to keep the price from crashing.
The price of Solana (SOL) could collapse violentlyAccording to a Cointelegraph report, there is a bearish technical indicator that overshadows the price of Solana's cryptocurrency, SOL, which threatens to fall by up to 95 percent.
The technical indicator is the head and shoulders pattern, which appears when the price forms three successive peaks above the resistance level commonly known as the neckline.
According to technical analysis on the weekly chart above, this pattern has the potential to bring the price through the neckline level at US$27.02, and move down by the distance between the head and the neckline, the calculation of which starts from that level.
If that happens, then the target for the decline is to decline by more than 95 percent, to a price level of US$ 2.79, which is in the lower high range in September 2021.
Using a kind of trendline, the popular trader sees the downside target at US$13.02 or US$21.01, before trying to rebuild the price recovery structure, which would be a higher low.
From a fundamental perspective, Solana is also facing extreme concerns due to frequent network outages, as well as rumors of centralization.
Moreover, this dire bearish outlook is also present as it follows trends in risk markets, which are driven by the hawkish stance of the Fed on inflation.
Fears of recession and inflation have led some analysts and investors to a negative view on the crypto's near-term outlook.
The gains that have occurred since the start of the second half of the year can still be erased by a strong selling push if global sentiment heats up again.
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