After hitting a peak at $223, Solana [SOL] has struggled to keep up with the upward trend. Consequently, the altcoin has been range-bound between $184 and $193 over the past four days.
Presently, Solana is trading at $183, reflecting a 1.42% decline in daily charts. Moreover, SOL has seen decreases of 14.72% and 18.68% on weekly and monthly charts respectively.
This prolonged decline has sparked discussions within the Crypto community regarding the movement of Solana’s price. Notably, prominent crypto analyst Ali Martinez has suggested a potential price swing of 40%, referencing a symmetrical triangle pattern.
Assessment of Market Sentiment
Martinez’s analysis highlights Solana’s consolidation within a symmetrical triangle pattern.
When an asset consolidates within this pattern, it signifies that prices are forming lower highs and higher lows, indicating a period of uncertainty where buyers and sellers are in stalemate.
Typically, price breakouts occur before reaching the apex of the triangle, often accompanied by a surge in trading volume.
Per Martinez’s assessment, a breakout above $214 or below $183 could trigger a 40% price swing. A breach above $214 could propel the altcoin towards $299, while a drop below $183 could see it plummet to $109.
Analysis of SOL Charts
The analysis offers insights into potential price movements for SOL in either direction, signaling a market scenario where buyers and sellers are striving to dominate.
In the short term, CryptoCrypto’s analysis suggests a prevailing bearish sentiment, indicating potential losses for the altcoin.
The ongoing bearish trend is evident in negative market sentiment experienced over the last four days. The shift to negative weighted sentiment indicates strong bearish sentiment in the market.
Furthermore, Solana’s Directional Movement Index (DMI) indicates significant downward pressure with +DI at 13 and rising ADX at 23, signaling strengthening downward momentum.
At present, a majority of market participants are leaning towards short positions, with 52% holding short positions and 48% opting for long positions. The prevalence of short positions suggests a bearish sentiment among investors anticipating price declines.
Conclusively, SOL is currently under strong bearish pressure, likely to breach the $183 support level. In case of a decline below the consolidation range, support can be expected around $175; conversely, a breakout above this range could lead Solana to challenge the $220 resistance level.