Price Analysis

Why Solana Price May Fall 25% Amid Market Correction

The formation of a double top amid broader market correction hints the Solana price is likely to see an extended downfall.

Published by

Sahil Mahadik

Published 02 Apr, 2024 | 04:56:58 PM UTC

Why 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?

Solana Price| Tradingview

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.

Solana Price| Tradingview

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.

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.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Published 02 Apr, 2024 | 04:56:58 PM

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