Solana Critical Path: Why The Next Solana Moves Demand Attention

Christian Encila

1 year ago

3 mins read

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Solana (SOL) has been navigating a challenging correction phase for approximately two months, during which its fortunes have ebbed and flowed. The most recent dip, occurring on Aug. 15, was a direct response to a sudden decline in the price of Bitcoin, sending shockwaves throughout the crypto market. However, a closer examination of Solana’s price chart reveals an emerging inverse head and shoulders pattern.

For those unfamiliar with the inverse head and shoulders pattern, it is a technical chart formation that signals a potential trend reversal. It consists of three key components: a lower low (the head) with two higher lows on either side (the shoulders), forming an inverted “T” shape. This pattern typically signifies a shift from a bearish trend to a bullish one, making it an enticing prospect for investors.

Solana appears to be sketching out this intriguing configuration, hinting at the possibility of a significant upswing in its price. However, the realization of this bullish scenario hinges significantly on SOL’s ability to breach a crucial resistance point known as the neckline.

Solana’s Potential Trajectory

As of the latest data available on CoinGecko, Solana (SOL) is currently trading at $23.79. Over the past 24 hours, the cryptocurrency experienced a slight dip of 0.6%, while it boasted a seven-day rally of 9.9%. These fluctuations reflect the ongoing battle between buyers and sellers, each vying for control of SOL’s price trajectory.

SOL seven-day price movement. Source: Coingecko

SOL: From Support To Vulnerability

Solana has come a long way from its support level at $22.38, offering sellers an opportunity to exert pressure on the cryptocurrency. If the selling pressure persists, price predictions indicate that SOL could drop another 12%, potentially reaching a price of $18.8. The market’s vulnerability underscores the need for a cautious approach, both for existing investors and potential buyers.

A closer examination of the daily timeframe chart reveals a distinct downward trend characterizing the ongoing correction phase of the cryptocurrency. Sellers are likely to continue exploiting any resistance points during bullish bounces, making it essential for investors to exercise caution.

As of today, the market cap of cryptocurrencies stood at $1.06 trillion. Chart: TradingView.com

As the market continues on its downward trajectory, potential buyers are advised to exercise patience. The best strategy might be to wait until the neckline resistance is breached, signaling a change in trend. Timing remains paramount, and investors should be prepared to act when the conditions are right.

Solana’s journey through the correction phase has been a rollercoaster ride for investors. In the midst of ongoing market fluctuations, staying informed and cautious is essential for both existing and potential investors in SOL.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from PYMNTS

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.