Supported by a double-bottom pattern, SOL’s price shows potential to exceed $150, while trading above the 50% Fibonacci retracement level indicates a bullish trend. However, the 24-hour trading volume stands at $2.01 billion, marking a notable 69% decline.
The Solana cryptocurrency is facing a potential price correction due to the formation of a double top pattern, indicating it might drop below the $150 mark. Starting April on a bearish trend alongside the wider market, Solana saw a downturn from $205, resulting in a 12.6% decrease to its current trading price of $179. Analysis of the daily chart suggests a double top pattern, indicating the possibility of an extended decline. However, there’s speculation about whether the upcoming Bitcoin halving could change this outlook and lead to a resurgence in Solana’s price.
Solana Faces Resistance and Potential Price Correction
Amidst the pre-halving consolidation in the crypto market, Solana encountered significant supply pressure at the $205 mark. The coin faced rejection twice from this resistance within three weeks, indicating active defense by sellers.
Solana Price| SOL
The repeated rejection at $205 led to the development of a bearish continuation pattern known as a double top. This pattern suggests increasing selling pressure and the potential for an extended correction.
Currently trading at $178, Solana’s price appears to be gradually approaching the pattern’s support level at $163. A bearish breakdown below this support could shift momentum in favor of sellers, potentially leading to a 25% drop to reach $120.
Market Sentiment and Technical Analysis for Solana
Esteemed trader Alicharts recently observed that sentiment surrounding Solana’s native token has reached a significant low point, reminiscent of sentiment levels following the network’s outage on February 6th.
This decline in sentiment is visually represented through a sentiment analysis chart, showing a notable decrease in social volume and sentiment score coinciding with a drop in the SOL price. Alicharts suggests that such pessimism in the market could potentially offer a contrarian opportunity for investors.
Crowd sentiment for $SOL hasn't been this low since the #Solana network outage on February 6. Being contrarian now might just pay off! pic.twitter.com/huLZIsafTt
— Ali (@ali_charts) April 6, 2024
For the SOL price to maintain a bullish trend, it must sustain above the 50% retracement level at $111, as indicated by the Fibonacci retracement tool.
Technical Indicators Analysis
The Directional Movement Index (DMI) shows a bearish crossover between the DI+ (blue) and DI- (pink), indicating a potential shift to a bearish trend in the near term. Additionally, the squeezed range of Bollinger band indicators reflects increasing volatility in SOL, as indicated by the BB indicator.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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