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Sunday, August 7, 2022

35% Of Crash In Price Of Solana Indicating Bearish Setups

There has been news that Solana (SOL) is risking a crash of 35% in the future as a pattern of the megaphone is forming in the upcoming days. At a time of peak volatility in the market, the setup of a megaphone is formed which comprises two higher highs and a minimum of lower lows. However, patterns similar to these contain consecutive swings of a minimum of five and the last one generally acts as a breakout indicator. 

Solana Price Crashed By 35% With Pattern Of Megaphone 

This year, a similar kind of pattern is being formed in Solana with a pullback in the value of their coins after conducting a test of the upper trendline of the megaphone worth $140 as a form of resistance. The pattern also resulted in Solana increasing its decline for testing the lower trendline for support of $65 which is 36% less than the current price. 

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There is a possibility for a further crash in Solana after the fifth swing is formed on the pre-existing structure of the megaphone. A perfect target of downside when a situation of breakout arrives is hard to find and tricky. Thus, most traders select a target by simply measuring the two trendlines distance where the lower one breaks and incurs profit at a price range of 50-60% of that distance. 

There is a hint that SOL will face a bearish risk where the price will reach $40 in the upcoming weeks. Moreover, there can also be a possibility that the bearish setup of SOL’s megaphone could not possibly achieve the breakout target because the price is backed by support levels. 

These support levels included a sloping trendline that went upward and the 50 weeks exponential average of Solana that served as zones of accumulation for traders. However, the downward target of the bear flag is approximately $30 after a proper calculation of the past uptrend of nearly $60 and then deducting it from the potential point of breakout which is near $90.

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