Solana (SOL) Sees Potential Wipeout Based On Bearish Technical Indicator

Christian Encila

Last Updated: August 17, 2022 6:10 pm

2 mins read

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Solana (SOL) price has enjoyed a winning streak by a whopping 75% as seen in the past two months after it has capsized to a mere $25.75.

SOL forms head-and-shoulders pattern hinting at bearish movement.
Solana’s 75% gain witnessed in the past two months may be a potential fake-out.
SOL price down by 2.40% and trading at $42.86 as of press time.

However, the gains may prove to just lead the traders on due to an impending bearish movement. Does this hint at a potential bullish fake-out?

SOL formed a head-and-shoulders pattern which can be resolved once the price breaches below the neckline. Solana has been showing a consistent bearish outlook as seen on the charts.

SOL Forms H&S Pattern; Indicates A Bearish Standpoint

Judging by the weekly chart, SOL has formed the right shoulder or a part of the H&S pattern which indicates a correction reaching $27 that could happen sometime in the second quarter of 2022. Inevitably so, a breach below the $27 zone could trigger a correction moving towards $2.80.

More so, a decline in token price by 95% may occur at the end of 2022 or the early part of 2023 as forecasted by Profit Blue, a crypto analyst.

According to CoinMarketCap, Solana price has nosedived by 2.40% or trading at $42.86 as of this writing.

Solana’s bearish behavior has become apparent as it’s impacted by Fed issues and trends that put the market at high risk. SOL recently closed the week with a profit of 10.5% on August 14 which is close to that of Bitcoin’s. It seems that the market has reacted to the U.S. consumer price index (CPI) which cites the possibility of Fed halting the increase in interest rates.

Solana 75% Gains – A Fake-Out?

In connection to this, analysts have already warned traders of these price rallies which historically hint a bearish breakout. In essence, the fakeout of SOL in line with its 75% gains may be true.

SOL also has a lot of issues to fix such as network outages and also centralization but the project developers have upgrades in place to correct these pressing problems.

Solana’s next big plunge could provide the token the opportunity to bounce close to the ascending trendline. Simply put, the bearish movement of SOL could go on until the price peaks at $20 which corresponds to a 55% drop from its price on August 16.

SOL total market cap at $14.3 billion on the daily chart | Source: TradingView.com

Featured image from Analytics Insight, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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