NewsletterWhy Solana Price May Fall 25% Amid Market Correction
Highlights
- The rounding bottom pattern leads to a long-term recovery trend in Solana coins.
- The current retracement may find suitable support at $162, followed by $136 or $111.5.
- The 24-hour trading volume on the Solana coin is $4.075 Billion, indicating a 2.5% loss.
Solana price: Amid the current market correction, the layer 1 cryptocurrency Solana is grappling to sustain above the $205 barrier. This overhead supply has rejected the price recovery twice within three weeks, showing the formation of a double-top pattern. This bearish pattern formation after an over-extended rally hints the SOL holders could see a notable correction ahead.
Also Read: Grayscale Solana Trust Hits Record Premium Amid Bull Run
Will SOL Price $150 Support?
From the late January bottom of $80, the Solana (SOL) Price Prediction for April 2nd – Is Solana (SOL) price ready for further growth long-term? has witnessed an aggressive rally which propelled its price 166% to hit a 27-month high of $210. However, the recovery trend shifted sideways below this resistance amid the broader market consolidation.
On April 1st, the SOL price showcased its second reversal from $205 resistance, leading the 12% downfall trade at $179.8. According to the derivative market tracker, Coinglass, this downfall triggered a liquidation of $20 million in Long positions.
An analysis of the daily chart showed this reversal as the formation of a bearish reversal pattern called double top. This technical setup usually hits top formation in an asset followed by a significant correction trend.
If the pattern holds true, the Solana price may plunge 8.5% to challenge the combined support of $162.3 and 23.6% Fibonacci retracement level. Losing this support intensifies supply pressure and pushes the coin price to $136 or $111.5 support.
Related: Solana Memecoins Suffer 15% Outflows as Wider Market Falls
However, a look at the weekly chart shows the SOL coin is rising under the influence of the largest rounding bottom pattern, a classic reversal pattern indicating the maturity of a downtrend and emerging on a new bull run.
With sustained buying, the buyers may drive a rally to a $260 high.
Technical Indicator
- Exponential Moving Average: The 20-and-50-day EMA slopes stand as key pullback support for buyers during an occasional market correction.
- Directional Movement Index: The DI+(blue) and DI-(orange) slope on the verge of bearish crossover hints at an active correction trend developing in this altcoin.
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