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.
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.