As the bear market grows intense, Solana enters a free fall. With sellers dominating the trend, analyst highlights a potential drop to $155.
With the liquidations rising in the crypto market, all coins are in a full fall. Currently, Solana has witnessed a massive drop of ~10% over the past 24 hours.
Currently, the trading price of SOL SOL $90.93 24h volatility: 0.8% Market cap: $52.07 B Vol. 24h: $3.42 B stands at $176, witnessing a massive intraday bearish engulfing candle. As the liquidations in the crypto market surge to $528M, with Bitcoin crashing under the $92K mark, will Solana crash to $150?
Symmetrical Triangle Breakdown Points to $155 Target
In the daily chart, the Solana price trend reveals a bearish breakdown of a long-coming support trend line. This puts a bearish conclusion to a rising wedge pattern, with the intraday bearish engulfing candle of 6.35% drop.
Currently, it stands at the test-crucial support zone at $175. The bearish engulfing candle has also broken under the 200 EMA line. The prevailing correction has influenced the crossover between the 20-day and 50-day EMA lines.
Thus, the average moving lines are giving a sell signal for Solana. However, the daily RSI line reveals a bullish divergence in the recent retest of the $175 support zone.
This projects a potential bounce-back to retest the broken trend line. Hence, if the Solana price sustains a daily closing above the support zone and the 200 EMA line, the bulls could reclaim the trend momentum. This could retest the $200 breakout. However, a bearish closing will likely retest the $155 support level.
Solana Derivatives Signal Extended Correction
As the bearish influence in the crypto market increases, the derivatives of Solana hint at an extended correction. The open interest has dropped under the $6 billion mark.
Currently, it registers a 6.07% drop and stands at $5.90 billion. Meanwhile, the long-to-short ratio has dropped to 0.8854, suggesting an intense bearish position in the crypto market.
Liquidations in particular to Solana have increased to $16.69 million over the past 24 hours. However, the bulls have taken a major hit of $14.89 million, while short liquidations stand at $1.8 million.
The funding rate is now down to 0.044%, indicating a high possibility of entering the negative territory, as it has recently dropped from its peak of 0.0093%.
Analyst Targets Downfall to $155
As Solana retraces down to below $180, this marks a bearish breakdown of a symmetrical triangle pattern predicted by Ali Martinez, a crypto analyst. In his recent post, Ali highlighted a triangle pattern set up in the 4-hour chart of Solana.
This predicted a high momentum move in case of a bullish breakout of the $214 resistance zone or the breakdown of the $183 support. As Solana marks a bearish breakdown, this hints at a potential downfall of 40%, with the target level at $155.
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