Solana’s weekend bounce risks turning into a bull trap — Can SOL price fall to $60 next?
More pessimistic cues for SOL come from a bull flag setup that is currently breaking to the drawback.
ALTCOIN WATCH
A rebound move witnessed within the Solana (SOL) market this weekend exhausted midway as its value rose below the $90 level from a high of $96 in the Gregorian calendar month. 21. In doing this, the SOL value technicals area unit is currently risking a classic pessimistic reversal setup. Solana’s value risks dropping to $60 in valuation.
Dubbed head-and-shoulders (H&S), the technical pattern emerges once the worth forms 3 peaks in an exceeding row atop standard damage (called a neckline). because it usually seems, the pattern’s middle peak, known as a “head,” comes longer than the opposite 2 peaks, known as the left and right shoulders, that return to be of comparable heights.
The H&S pattern tends to send the costs lower—at length adequate the utmost distance between the pinnacle and also the neck—once they resolutely break below its neckline. As a result, Solana, which has been forming an identical technical structure lately, risks slippy toward $60, or virtually half-hour.
Interestingly, the H&S drawback target, near $60, was conjointly instrumental as support in August 2021, right before Solana’s value rallied to its record high higher than $250. The bear flag will increase drawback risks. The risks of Solana undergoing an amount of major sales events are jointly increasing because of a technical pattern known as a “bear flag.”
Related to the bottom ahead? Solana paints its initial ‘death cross’ as SOL losses five hundredths in the Gregorian calendar month. Notably, SOL’s value has been breaking out of the pessimistic continuation setup. In doing this, it currently risks falling by the maximum amount because the length of its previous downtrend, known as “flagpole,” once measured from the purpose of break, as shown within the chart below.
