Monday, July 22, 2024

Solana’s weekend rally could turn into a bull trap – could the price of SOL plummet to $60 next?

Crypto traders know what the head-and-shoulders (H&S) pattered is. This pattern is formed when there are three consecutive peaks. These there peaks are on top of a common support level. The support level is itself called the neckline.

Of the three peaks the center peak is called the head. The two peaks on the side are called, the shoulders. The head is slightly higher than the slightly lower right and left shoulders.

Solana’s Trends

It has been observed that when the H&S pattern forms, the prices usually drop. The price drop usually happens when the prices drop below the neckline. The extent of the drop is equal to the maximum distance between the head and the neckline.

There has been a H&S pattern forming for Solana. Going by how asset values fall after the H&S formation, Solana may fall involve by upto 30%. If that happens it will settle at $60.

In August of 2021, the price of $60 happened to be the support level. Immediately after that, Solana saw a huge surge to $250.

In addition to the H&S, there is another pattern which indicates a possible Solana sell-off. This pattern is called the ‘bear flag’. Solana is known to have previously broken out of the bearish set up. However, it is now poised to fall by what was the length of its previous fall – the flagpole. The flagpole is measured from the point of the breakout. If Solana follows the flagpole breakout the price may decline to as low as $ 60. This conforms to the expectations signalled by the H&S pattern.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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