Solana (SOL) Price is Poised to Fall Further, This is A Potential Target
The price of Solana (SOL) has formed a bearish pattern within a strong resistance zone. It is expected to decline towards the support level of $15 in the near future.
Weekly Outlook
The price of Solana (SOL) has been decreasing along with a descending resistance line since January 2022. During this period, the price has been rejected by this line several times, leading to a low of $8 in December 2022.
Although the price has seen a strong recovery since then, it has still failed to break above the horizontal resistance zone at $27 and the long-term resistance line. Instead, it has formed a double top pattern within this resistance zone. This is a bearish pattern that often indicates a trend reversal to the downside.
Furthermore, this is accompanied by bearish divergence within the RSI indicator. Therefore, there is a possibility that the SOL price will decline towards the support level of $15, formed by the horizontal support zone and the 0.618 Fibonacci retracement level.
Break below short term support
The daily chart also indicates a similar bearish scenario to the weekly timeframe. It shows that the SOL price has broken below the minor support zone at $20 and is in the process of confirming it as a resistance level (red arrow).
If successful, the SOL price may decline towards the next minor support level at $17.
The RSI indicator supports further downside as it remains below 50 and is sloping downwards.
Conclusion
The most likely outlook suggests that the SOL price will continue to decline in the near future. The immediate targets are $17 and potentially lower towards $15.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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