Solana

Long

April

Solana price: Amid the current market correction, the layer 1 cryptocurrency Solana is grappling to sustain above the $205 barrier. This overhead supply has rejected the price recovery twice within three weeks, showing the formation of a double-top pattern. This bearish pattern formation after an over-extended rally hints the <a href="https://coingape.com/solana-labs-co-founder-unveils-bunkercoin-whitepaper-innovation/">SOL</a> holders could see a notable correction ahead. 
Also Read: <a href="https://coingape.com/grayscale-solana-trust-hits-record-premium-amid-bull-run/">Grayscale Solana Trust Hits Record Premium Amid Bull Run</a> 
<h2 id="b-will-sol-price-150-support-b">Will SOL Price $150 Support?</h2> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/v/V393IxJF.png" alt="BINANCE:SOLUSDT Chart " width="1946" height="937">
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 Solana Price| Tradingview
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From the late January bottom of $80, the Solana (SOL) Price Prediction for April 2nd – Is Solana (SOL) price ready for further growth long-term? has witnessed an aggressive rally which propelled its price 166% to hit a 27-month high of $210. However, the recovery trend shifted sideways below this resistance amid the broader market consolidation. 
On April 1st, the SOL price showcased its second reversal from $205 resistance, leading the 12% downfall trade at $179.8. According to the derivative market tracker, Coinglass, this downfall triggered a liquidation of $20 million in Long positions. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/g/GitIgdsk.png" alt="BINANCE:SOLUSDT Chart " width="1946" height="937">
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 Solana Price| Tradingview
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</figure> 
An analysis of the daily chart showed this reversal as the formation of a bearish reversal pattern called double top. This technical setup usually hits top formation in an asset followed by a significant correction trend.&nbsp; 
If the pattern holds true, the <a href="https://coingape.com/price/solana/">Solana price</a> may plunge 8.5% to challenge the combined support of $162.3 and 23.6% Fibonacci retracement level. Losing this support intensifies supply pressure and pushes the coin price to $136 or $111.5 support. 
Related: <a href="https://coingape.com/trending/solana-memecoins-suffer-15-outflows-as-wider-market-falls/">Solana Memecoins Suffer 15% Outflows as Wider Market Falls</a> 
However, a look at the weekly chart shows the SOL coin is rising under the influence of the largest rounding bottom pattern, a classic reversal pattern indicating the maturity of a downtrend and emerging on a new bull run. 
With sustained buying, the buyers may drive a rally to a $260 high. 
<h2 id="b-technical-indicator-b">Technical Indicator</h2> 
<ul> 
 <li aria-level="1">Exponential Moving Average: The 20-and-50-day <a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/">EMA</a> slopes stand as key pullback support for buyers during an occasional market correction.</li> 
 <li style="font-weight: 400;" aria-level="1">Directional Movement Index: The DI+(blue) and DI-(orange) slope on the verge of bearish crossover hints at an active correction trend developing in this altcoin.</li> 
</ul> 
The post <a href="https://coingape.com/markets/why-solana-price-may-fall-25-amid-market-correction/">Why Solana Price May Fall 25% Amid Market Correction</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Why Solana Price May Fall 25% Amid Market Correction

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