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Solana Price Analysis: SOL Coin Forming A Double Top Pattern In The Daily Time

  • SOL coin showed strong rejection candles at the $42 resistance in the daily time frame
  • The SOL/BTC pair was trading at 0.00988 BTC with a loss of 4.83%
  • The 24 hr trading volume in SOL is $393.78 Million. 
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The SOL coin showed strong rejection candles at a $42 resistance level in the daily time frame, resulting in the price dropping to $36.5 with an intraday loss of 9.60%. In addition, looking at the price action of the SOL coin for a few days, the price shows a possibility of forming a double top pattern with its neckline at $34.5. Successful execution of this pattern could plunge the price to the $30 mark.

About the EMA’s, today, the SOL coin just broke the 20 and 50 EMA levels indicating bearishness in the price. As for the 100 and 200 EMA’s, they move near the lower level and should act as strong support levels.

The RSI (NEURAL) current value is 49, indicating a neutral sentiment. However, investors can plot RSI in their chart to determine the strength of any upcoming fall.

The Breakout From A Double Top Pattern In The 4hr Time Frame Triggering The Bear Of Sol Coin

Tradingview

The 4hr time frame chart of the SOL coin shows the breakout from a double top pattern backed up by strong volume. Investors can wait for a retest to get a better entry opportunity, as the price could plunge to $34.6 or more. 

The MACD indicator (bearish) gives a bearish signal as the MACD line and the signal line gives a bearish crossover indicating a sell signal. Also, the lines are slowly entering the selling zone as the price moves lower. The histogram shows rising red bars indicating bearish momentum.

Conclusion: From the technical perspective, the SOL coin shows many short opportunities one after another, starting with the double bottom pattern in the 4hr time frame, which has already given a breakout, and investors can wait for a retest for a better entry point. Also, this pattern could help to complete the same pattern of daily time frame for a more rewarding trade.

Support: $34.7

Resistance: $42