Solana’s (SOL) stock price has been on an incredible 75% win streak in just two months, after its capsize at $25.75.
- SOL creates a head-and shoulders pattern that suggests bearish movements.
- Solana’s 75% gain witnessed in the past two months may be a potential fake-out.
- SOL prices down by 2.40%, trading at $42.86 in press time
It is possible that the gains could be a distraction for traders due to upcoming bearish movements. This could be a sign of a possible bullish faux-out.
SOL created a head and shoulders pattern that can be solved once the price drops below the neckline. The charts show that Solana continues to be bearish.
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. Unavoidably, any breach of the $27 area could lead to a correction that moves towards $2.80.
Profit Blue, a cryptocurrency analyst, predicts that a drop in the token price of 95% could occur by 2022, or early 2023.
CoinMarketCap reports that Solana’s price dropped by 2.4% or is trading at $42.86 (as of the 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. Market reaction to U.S. Consumer Price Index (CPI), mentions Fed stopping interest rate increases.
Solana 75% Gains – A Fake-Out?
Analysts have warned traders about these historical price rises that could indicate a bearish breakout. SOL’s fakeout may actually be real, given its 75% gain.
SOL still has many problems to solve, including network outages as well as centralization. But the project developers are working to rectify these critical issues.
Solana’s next big plunge could provide the token the opportunity to bounce close to the ascending trendline. SOL’s bearish trend could continue until it reaches $20, which would represent a 55% decline from August 16th.
SOL Total Market Cap at $14.3 Billion on Daily Chart | Source: TradingView.com Featured image taken from Analytics insight. Chart from TradingView.com
