Solana (SOL) is set to see some significant price corrections in the coming weeks because of a bearish reversal setup. SOL has seen a rising wedge, which has been confirmed by two ascending, converging trendlines and falling trading volumes.
Experts say rising wedges may result in the breakdown – resolving after the altcoin’s price breaks below the lower trendline. If there is a breakdown, it could fall by as much as the maximum distance between the wedge’s upper and lower trendline. Solana is trading within a falling wedge range, and there is an immediate pullback from the wedge’s upper trendline with the interim downside target at the lower trendline at around $45.
Solana is currently trading at $46.85, down by 0.23% in the last 24 hours but up by 17.17% in the last seven days. Analysts say the coin risks falling toward $30 if the price breaks below the lower trendline, along with a rise in trading volumes. This means that there could be a 35% price drop by September. But a bounce from the lower trendline could see SOL having an immediate rebound toward the wedge’s apex point at $53.50. A breakout above the upper trendline would invalidate the bearish reversal setup if Solana rises to the 50-3D exponential moving average near $58.
Furthermore, the ninth most popular cryptocurrency by market cap is battling a flurry of negative events. This includes repeated network outages, centralized concerns, and a widespread hack that targeted Solana wallets. Nonetheless, SOL rallied nearly 40% in August. The gains are attributed to the Solana team clarifying that Slope, a Web3 wallet provider, was responsible for the $8 million exploit, including Solana’s.