Will Solana Price Correction Breach $150 Support?
Highlights
- A potential breakdown from the double-top pattern will accelerate the selling pressure.
- The SOL price drop below the 20-day EMA hints the near-term trend turning bearish.
- The 24-hour trading volume on the Solana coin is $6.3 Billion, indicating a 69% gain.
The cryptocurrency market extended its leg down on Friday following the Bitcoin price fall to the day’s low of $66000. This selling pressure extended the correction trend for most of the major altcoins including Solana. The SOL price is down 5% today bolstering the formation of a reversal pattern called double top. Will this bearish setup amid broader market correction push SOL coin below $150?
Also Read: Solana Meme Coin MEW Rallies 50% Amid Major Listing Announcement
Solana Price Faces Double Top Pattern and Network Efficiency Concerns
In mid-March, the cryptocurrency market entered a new correction trend as Bitcoin reverted from its new high of $73800. As a result, the Solana price trajectory turned sideways below the $205 resistance. Within three weeks, the coin price was rejected twice from overhead resistance indicating the sellers are actively defending this barrier.
Furthermore, an analysis of the daily chart shows the double top pattern formation—a chart setup commonly observed at market tops before a sharp reversal. Amid the current market sell-off, the SOL price of 15% from the aforementioned top its reach current trading price of $173
In a recent critique highlighted by Kyledoops, the Solana network is facing substantial scrutiny due to significant network congestion and an alarming 76.8% transaction failure rate. The data, sourced from a Dune Analytics dashboard, reveals a troubling trend in the network’s inability to handle non-vote transactions—those occurring between wallets and smart contracts—effectively.
This surge in failed transactions calls for urgent attention and action from the Solana developers to bolster the network’s capacity and reliability to meet the high demands of a bullish market and maintain user trust.
Also Read: Solana DEX Jupiter Announces Major Upgrade, JUP Price To Rally?
Key Levels to Watch Amid Market Correction
Under the influence of a bearish pattern, the Solana coin plunged 6% to challenge the neckline support of $163. A successful breakdown will accelerate the selling pressure and extend the correction trend to $120.
Conversely, a reversal from $163 support will weaken the bearish thesis and continue sideways action.
Technical Indicator
- Related Strength index: A notable bearish divergence between the two peaks for a double top pattern indicates the sellers strengthening their grip over the asset.
- Exponential Moving Average: For the past six months, the 50-day EMA slope has defended the SOL price during market corrections.
Related Articles
Recent Posts
- Price Analysis
Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
The Ethereum price remains steady near the $3,900 level after multiple failed attempts to reclaim…
- Price Analysis
Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
Bitcoin price is hovering around $111,742, reflecting a 0.5% gain in the last 24 hours.…
- Price Analysis
PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
Pepe coin price has remained under pressure despite renewed signals of investor repositioning in the…
- Price Analysis
HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
HBAR price rose by 2.4% today, Oct. 24, mirroring the performance of the crypto market…
- Price Analysis
Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
The Chainlink price has maintained steady traction near $17.6, with on-chain accumulation strengthening investor confidence.…
- Price Analysis
SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
The Sui price has recently drawn investor interest after rebounding from a key demand zone,…