Solana Latest news: Bearish pattern hits a record 70$

The price of Solana (SOL) may fall to $ 70 per token in the coming weeks as head and shoulder adjustments have emerged in the daily time frame and may indicate a 45% decline.

The chart below shows that the price of SOL rose to almost $ 217 in September 2021, fell to a support level close to $ 134, and then set a new record high of $ 260 in November 2021. Earlier this week, the price dropped back to try out the same $ 134. -level of support before moving to the lowest level in 2022 at $ 87.73.

SOL / USD weekly price chart showing head and shoulder settings. Source: TradingView

This phase of pricing seems to have shaped the head-and-shoulder setting, a bearish-turning pattern containing three consecutive peaks, with the middle one being around $ 257 (called “head”) higher than the other two around $ 200 to $ 210 and right shoulder).

Meanwhile, the three SOL peaks placed at the top of the total support level at $ 134, called the “cutout”. A fall below it signals an extended downward trend to a level at a length equal to the maximum distance between the head and neckline.

In the case of SOL, the distance is around $ 137, making the target price for head and shoulders almost $ 170.

The trend so far

The bearish outlook came when the price of SOL fell by more than 22% this week, and currently altcoin is around 55% of its record high, well behind other high-capitalized digital assets, including Bitcoin (BTC) and Ether (ETH).

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Weekly chart of BTC / USD prices compared to ETH / USD. Source: TradingView

At the heart of the steady decline in the cryptocurrency market is the US Federal Reserve’s decision to unleash its $ 120 billion-a-month buyout program, followed by three or more interest rate hikes spanning 2022.

The central bank’s loose monetary policies have helped raise the cryptocurrency market’s valuation from $ 128 billion since March 2020 to as much as $ 3 trillion in November 2021. Therefore, there is evidence of declining investor influence to limit its exposure to overblown markets. , including Solana, which has gained almost 12,500% since March 2020.

Consequently, if the crypto market continues to decline in future sessions, SOL will also be in danger of confirming its head and shoulder setting.

Short-term SOL forecasts

While the SOL chart with a longer time frame tends toward a long-term bearish setup, its short-term outlook looks relatively bullish.

Related: Bitcoin fell to a six-month low of close to $ 38,000

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Daily chart SOL / USD. Source: TradingView

This is mainly due to two factors. First, the price of SOL fell to a critical level of support of $ 116, which helped limit its attempts to fall in September 2021. And second, its daily relative strength index (RSI) fell below 30 – the classic buy signal.

The opinions and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you need to do your own research when making a decision.

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