The price of SOL (Solana) might decrease and hit as low as $70 for each token over the new few weeks. A setup of head and shoulders was formed on the everyday timeframe which indicates a possible decline of over 45%.
Where SOL’s Price Is Headed
In Sept 2021, the price of Solana rallied to reach heights of about $217. However, it subsequently began dropping till it reached the support level in the proximity of $134. Then, in Nov 2021, Solana’s price rallied once more and set a new highest price record at $260. Earlier in the week, SOL’s price dropped again and tested the same support level of $134. However, it has since broken to a new low in the New Year which stands at $87.73.
This price action phase seems to have created a setup of head and shoulders. It is a reversal pattern that is bearish and contains three peaks back to back. The middle peak is about $257 (also known as the middle head) and seems to reach more height than the surrounding two which stand at $200 and $210 respectively.
Meanwhile, the three peaks of the token have formed on top of a regular support level that is $134. This is known as the neckline. When the price drops beneath this line, it indicates a downtrend that will extend till it reaches a level that is equal in length to the max distance between the neckline and the head.
In the case of this token, this distance is about $137. As a result, the head and shoulders target price of the token is almost $170. If the cryptocurrency market continues to decline in the future sessions, Solana will also run a risk where it will be validating this setup of head and shoulders.