Crypto analyst Ali Martinez has identified a bearish continuation pattern for Solana (SOL), with a potential price target of $65.
Martinez points to a right-angled ascending broadening formation, a technical pattern that typically precedes significant downward movements.
The prediction comes at a time when Solana has been seeing a volatile trade, currently trading at $125.16, down 5.77% as compared to the same time last day.
Martinez Sys $65 Still A Possibility for Solana
If SOL breaks below the critical support level of $120, it could trigger a sharp decline, possibly reaching $65, a level not seen since December 2023.
This analysis aligns with other indicators, such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF), which suggest oversold conditions and sustained selling pressure.
Martinez emphasizes that a decisive drop below $120 would invalidate the ascending pattern, reinforcing the bearish outlook.
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Why is Solana Down?
A number of factors affecting Solana’s (SOL) market performance are causing its price to drop at the moment. The recent controversy surrounding the LIBRA memecoin, which was pushed by individuals connected to Argentina’s political elite before experiencing an unexpected rug pull, is a major factor.
Over the past week, network transactions have decreased by 60% as a result of this occurrence, which has damaged faith in the Solana memecoin industry.
Furthermore, Solana whales have been selling off their holdings; throughout the last two weeks, there has been a 2.24% drop in the number of wallets holding more than 100 SOL. This suggests that investor confidence has declined, which has pushed SOL’s price lower.
With a 12% drop since February 20, the broader cryptocurrency market is also in decline. Since Solana’s price reflects the performance of other significant cryptocurrencies, it has been impacted by this market-wide downturn.
Solana’s recent price decrease is a result of a combination of market conditions, investor behavior, and network difficulties.
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Solana’s Fall Also Comes Due to Halt in Speculative Trading
A notable halt in speculative activity, especially in the memecoin space, is a major factor in Solana’s recent price fall.
Memecoin trading, which attracted retail investors and increased network activity, was a major factor in Solana’s surge earlier this year.
However, the trading volume and momentum on the Solana network have decreased along with the decline in interest in these high-risk coins.
There is now less demand for SOL, the native token, as a result of the decline in buzz, which is pushing the price lower.
Lower liquidity and a less bullish mood result from investors being more cautious in the absence of the speculative fervor that once propelled sharp increases. This change affects Solana’s short-term price behavior and is indicative of a general cooling in risk appetite throughout the cryptocurrency market.
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