SOL Price Alert: Bearish Pattern Could Push Solana Down 17%

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As a seasoned researcher who has weathered multiple crypto winters and summers, I must admit that every new prediction or pattern analysis like the one by Ali Martinez makes me pause and consider its potential implications. While I’ve seen my fair share of market fluctuations, I can’t help but remember the old adage, “The more things change, the more they stay the same.”

Crypto expert Ali Martinez recently pointed out a concerning trend on Solana’s (SOL) price graph, which is currently the fourth largest altcoin in the market.

Based on Martinez’s analysis, it appears that Solana’s hourly chart shows signs of a possible head and shoulders formation. If this pattern holds true, we might expect a potential price drop towards $122, which represents a 17% decrease from its current value.

An ‘head and shoulders’ pattern in trading essentially takes the form of two smaller peaks flanking a larger one. The valley between these two smaller peaks is known as the ‘neckline’. A break below this neckline, meaning the price drops below it, can frequently signal to traders that the price may be set to decrease, much like a warning signal waving.

In the hourly chart, Solana might be shaping up as a head-and-shoulders formation. If this pattern holds true, a dip below $141 could initiate a correction, potentially pushing Solana’s price down to around $122!

— Ali (@ali_charts) August 12, 2024

Protect neck

According to Martinez’s perspective, the pattern became apparent starting from mid-August. This marked the second half of the first week. The increase in SOL price to $163, caused by a surge and subsequent drop, initiated the formation of the right shoulder. At this critical juncture, we experienced a significant shift.

If Martinez’s forecast about Solana’s price holds true, this current phase could be crucial for one of the leading cryptocurrencies. The predicted effect on Solana’s (SOL) price trend is substantial because the Solana platform hosts a variety of other cryptocurrencies. Some of these coins have market caps in the billions and thousands more have smaller caps.

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2024-08-13 12:52