Solana

2024

Bitcoin

April

Reversal

Solana, the layer 1 cryptocurrency initiated April on a bearish note in tandem with the broader market. The bearish downturn initiated at $205, plunged the coin price 12.6% to current trade at $179. Analyzing the daily chart reveals this reversal as the formation of a double-top pattern, suggesting the asset is poised for prolonged downfall. However, will the upcoming<a href="https://coingape.com/markets/crypto-price-prediction-sideways-market-bullish-pre-bitcoin-halving/" rel="noopener noreferrer nofollow"> Bitcoin halving</a> invalidate this thesis for a renewed recovery?
Also Read: <a href="https://coingape.com/solana-strategy-head-austin-federa-on-network-glitch-we-will-overcome/" rel="noopener noreferrer nofollow">Solana Strategy Head Austin Federa On Network Glitch, We Will “Overcome”</a>
<h2 id="b-solana-price-faces-double-top-pattern-and-network-efficiency-concerns-b">Solana Price Faces Double Top Pattern and Network Efficiency Concerns</h2>
<figure style="width: 100%" class="wp-caption alignnone"><img decoding="async" src="https://s3.tradingview.com/snapshots/x/xgR7V7qX.png" alt="BINANCE:SOLUSDT Chart " width="1815" height="836">
 <figcaption class="wp-caption-text">
 Solana Price| SOL
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</figure>
Amid the pre-halving consolidation in the crypto market, the <a href="https://coingape.com/price/solana/" rel="noopener noreferrer nofollow">Solana price</a> witnessed intense supply pressure at $205. The coin reverted twice from this resistance twice within three weeks indicating the sellers are actively defending this barrier.
Utilizing this resistance as a local top, the <a href="https://coingape.com/solana-faces-second-network-congestion-in-two-days-anza-issues-fix/" rel="noopener noreferrer nofollow">SOL price</a> develops a bearish continuation pattern called a double top. In theory, this chart pattern reflects the building selling pressure and potential for prolonged correction.
The SOL price currently trades at $178 and is gradually heading to the pattern’s support at $163. A bearish breakdown below this support will put sellers at an advantage and may drive a 25% drop to hit $120.
<h2 id="b-contrarian-opportunities-emerge-amid-solana-s-double-top-formation-b">Contrarian Opportunities Emerge Amid Solana’s Double Top Formation</h2>
In a recent observation by the esteemed trader Alicharts, it was noted that the crowd sentiment around Solana’s native token has reached a notable low point, comparable to the sentiment after the network’s outage on February 6th.&nbsp;
This downturn in sentiment is visually captured through a sentiment analysis chart, which shows a substantial decline in social volume and sentiment score coinciding with a decrease in the SOL price. Alicharts suggests that such pessimism in the market may actually present a contrarian opportunity for investors.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Crowd sentiment for <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a> hasn't been this low since the <a href="https://twitter.com/hashtag/Solana?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Solana</a> network outage on February 6. Being contrarian now might just pay off! <a href="https://t.co/huLZIsafTt" rel="noopener noreferrer nofollow">pic.twitter.com/huLZIsafTt</a>
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1776723666656534722?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 6, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
As the Fibonacci retracement tool, the SOL price must sustain above the 50% retracement level at $111 to keep the broader trend bullish for this asset.
<h2 id="b-technical-indicator-b">Technical Indicator</h2>
<ul>
 <li aria-level="1">Directional Movement Index (DMI): A bearish crossover between the DI+(blue) and DI-(pink) indicates the near-term trend is turning bearish.</li>
 <li style="font-weight: 400;" aria-level="1">BB indicator: The squeezed range of Bollinger <a href="https://coingape.com/education/bollinger-band/" rel="noopener noreferrer nofollow">band indicators</a> reflects increasing volatility in SOL.</li>
</ul>
The post <a href="https://coingape.com/markets/double-top-reversal-sets-solana-price-correction-to-120/" rel="noopener noreferrer nofollow">Double Top Reversal Sets Solana Price Correction to Hit $120</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Double Top Reversal Sets Solana Price Correction to Hit $120

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