Solana has seen a price drawdown of around 12% during the past day, but if this pattern is to go by, there could be more decline on the way. Solana Has Seen A Crash Over The Last 24 Hours The cryptocurrency sector as a whole has plummeted during the past day, with Solana not being spared as its price has also gone through a notable decline. Below is a chart that shows how SOL’s recent performance has looked. From the graph, it’s visible that Solana has suffered a steep plunge of almost 12% in this period, which is worse than many other top cryptocurrencies. Bitcoin (BTC), for instance, has seen a decline of around 5%. Related Reading: Bitcoin To $181,000? Mayer Multiple Reveals When BTC Will Become ‘Overbought’ Following this crash, Solana is now back at the $227 level. The asset has seemingly paused its fall for now, but it’s possible that it would resume soon. SOL Has Breached Under Its Symmetrical Triangle In a post on X earlier in the day, analyst Ali Martinez discussed about a Symmetrical Triangle that Solana had been trading inside. The “Symmetrical Triangle” here is a pattern from technical analysis (TA) that forms when the price of an asset consolidates between two trendlines of a roughly equal and opposite slope. The upper line of the triangle connects together lower highs in the price, while the lower level joins higher lows. As the asset travels inside the pattern, its range gradually converges on the midpoint line. Like other TA patterns, the upper level of this pattern is likely to provide resistance to the asset. Similarly, the lower line can help the cryptocurrency to reach a bottom. A break out of either of the trendlines can imply a continuation of trend in that direction. That is, a break above the triangle is a bullish signal, while a fall under it can lead to a bearish outcome. The Symmetrical Triangle is just one possible type of triangular-shaped formation that an asset can display. Two other popular ones are the Ascending and Descending Triangles, which occur when one of the trendlines is parallel to the time-axis (the upper one in the case of the former and the lower one for the latter). Now, here is the chart shared by the analyst that shows the Symmetrical Triangle that the 1-hour price of Solana had been stuck inside over the past week: From the graph, it’s visible that Solana was approaching the apex of the triangle when Martinez had made the post. As the consolidation becomes narrower, a breakout can become more probable to occur, which appears to be just what has happened with SOL in the hours since. The height of this triangle was equal to a swing of around 20%. Usually, Symmetrical Triangle breakouts are of the same degree as the height of the pattern, so the analyst had noted that SOL could be primed for a 20% move. Related Reading: Bitcoin Shark Wallets Set New Record: Bullish Foreshadowing For 2025? While a breakout does seem to have occurred for Solana, it hasn’t yet elongated to this scale. It now remains to be seen whether the pattern would hold for the asset or not. Featured image from Dall-E, charts from TradingView.com
An analyst has explained how Solana (SOL) is currently mirroring the same pattern that led to a bullish breakout for its price back in 2021. Solana Appears To Be Showing Similar Trend To 2021 Right Now In a new post on X, analyst Ali Martinez has discussed about how the pattern recently forming in SOL has been reminiscent of what the cryptocurrency showed back in the July of three years ago. Related Reading: Bitcoin MVRV Ratio At Make-Or-Break Test: Will Support Hold? Below is the chart shared by the analyst, that highlights the similarity between the two periods: As is visible in the graph, the Solana 3-day price has so far shown a trajectory that has been similar to the one in 2021. Not only that, the current Relative Strength Index (RSI) is also at around the same level as the one back then. The RSI refers to an indicator in technical analysis (TA) that basically measures the speed as well as the magnitude of the recent changes occurring in SOL’s price. This momentum indicator is generally used for determining whether the asset’s price is fair or not. When the indicator has a value greater than 70, it’s a potential sign that the cryptocurrency is becoming overvalued as its price is growing too quickly. As such, corrections can become more likely in this region. On the other hand, the metric being under 30 implies a possible oversold condition is forming in the asset, meaning that a bottom could be probable to form in its price. From the chart, it’s visible that the RSI is at around 40 for Solana currently, suggesting that the asset is slightly leaning towards being undervalued. Interestingly, back in 2021, this same RSI level led to a big bullish breakout for the cryptocurrency. Given that the coin’s price has shown a similar trajectory as back then, and its RSI has also been pretty much the same, it’s possible that another surge might start for Solana from here. It now remains to be seen if past pattern will repeat for the asset or if it will follow a new path entirely. Related Reading: Bitcoin ‘Extreme Greed’ Is Almost Here: Price Bottom Now Close? In some other news, a SOL whale made a massive move on the blockchain just a couple of days ago, according to data from the cryptocurrency transaction tracker service Whale Alert. The move, which involved the transfer of 287,019 SOL (equivalent to over $40.3 million at the time the transaction was executed), travelled from an unknown wallet, likely to be the whale’s personal address, to an exchange: Binance. Thus, given the direction, it’s possible that this humongous holder had made the deposit for selling purposes. Soon after the move had come, the asset’s price had seen a dip towards the $128 mark, suggesting that the whale had played a role or had at least anticipated the drop. Whatever the case be, though, Solana has already made recovery from the drawdown. SOL Price At the time of writing, Solana is trading around $141, down more than 8% over the past week. Featured image from Shutterstock.com, whale-alert.io, charts from TradingView.com