Altcoins
A 20% drop could be valid if SOL price fails to maintain these levels!
After a huge rally, cryptocurrency markets are correcting as Bitcoin Prices drop below $63,000 following a small correction. After touching highs at $160, Solana price has again dropped below $155 and is also approaching the key support at $150. With this, a bearish outlook for the Price SOL a rally occurs that could drop the value by another 15-18%, but only if the cryptocurrency fails to maintain certain levels.
Solana price has risen quite significantly in the past few months as the buying volume has skyrocketed. The daily chart of the token suggests that the rally has been stuck inside a bearish head and shoulders pattern and has reached the neckline. The price has been trading inside an overall downtrend where it has been attempting to rally above the resistance. Unfortunately, the bears have limited the movement and are forcing the price back inside the range.
Now that the levels are stuck inside a crucial support zone, the recent price action suggests that the price is inclined to a new downtrend.
Regardless of the recent upside, SOL price continues to trade inside a descending triangle and the recent rejection validates the pattern. The Ichimoku Cloud has shown the possibility of turning into an uptrend as the lead span B has shown divergence. Also, the RSI has risen above the descending trend line but failed to stay elevated. As the selling volume has increased slightly, the possibility of falling to the temporary support near $140.
At this stage, if the bulls show some strength, there may be a chance for a rebound, which may be limited to $150. Otherwise, a failure may cause the token to test the lower support near $125, which may attract huge traders’ attention and a massive influx of volume. This may cause Solana price to trigger a strong rebound and prevent excessive drainage, aiming to recover the lost levels.