{"id":397872,"date":"2022-01-23T02:30:00","date_gmt":"2022-01-22T23:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bearish-chart-pattern-hints-at-70-solana-sol-price-before-a-possible-oversold-bounce\/"},"modified":"2022-01-23T02:30:00","modified_gmt":"2022-01-22T23:30:00","slug":"bearish-chart-pattern-hints-at-70-solana-sol-price-before-a-possible-oversold-bounce","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bearish-chart-pattern-hints-at-70-solana-sol-price-before-a-possible-oversold-bounce\/","title":{"rendered":"# Bearish chart pattern hints at $70 Solana (SOL) price before a possible oversold bounce"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27e2356fb7d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27e2356fb7d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bearish-chart-pattern-hints-at-70-solana-sol-price-before-a-possible-oversold-bounce\/#The_trend_so_far\" >The trend so far<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bearish-chart-pattern-hints-at-70-solana-sol-price-before-a-possible-oversold-bounce\/#SOLs_short_term_outlook\" >SOL&#8217;s short term outlook<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bearish chart pattern hints at $70 Solana (SOL) price before a possible oversold bounce <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Solana (SOL) price may fall to $70 a token in the coming weeks as a head and shoulders setup emerged on the daily timeframe and possibly points toward a 45%+ decline.<\/p>\n<p>The chart below shows that\u00a0SOL price rallied to nearly $217 in September 2021, dropped to a support level near $134 and then moved to establish a new record high of $260 in November 2021. Earlier this week, the price fell back to test the same $134-support level before breaking to a 2022 low at $87.73.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/b664ec8f-cdd0-4be3-8019-aa9d24c5adfb.png\"><figcaption style=\"text-align: center;\"><em>SOL\/USD weekly price chart featuring head and shoulders setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>This phase of price action <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have formed a head and shoulders setup, a bearish reversal pattern containing three consecutive peaks, with the middle one around $257 (called the &#8220;head&#8221;) coming out to be higher than the other two around the $200 to $210 (left and right shoulders). <\/p>\n<p>Meanwhile, SOL&#8217;s three peaks have stood atop a common support level at $134, called the &#8220;neckline.&#8221; A fall below it signals an extended downtrend to the level at length equal to the maximum distance between the head and the neckline. <\/p>\n<p>In SOL&#8217;s case, the distance is around $137, which puts its head and shoulders price target at nearly $170.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_trend_so_far\"><\/span>The trend so far<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The bearish outlook came as SOL price dropped by more than 22% this week and currently the altcoin is around 55% from its record high, much in line with other large-cap digital assets, including Bitcoin (BTC) and Ether (ETH).\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/7c55667b-6bd1-4d86-9f2c-5a1548451d70.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD vs. ETH\/USD weekly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>At the center of the ongoing crypto market decline is the U.S. Federal Reserve&#8217;s decision to unwind its $120 billion a month asset purchasing program followed by three or more interest rate hikes spread throughout 2022. <\/p>\n<p>The central bank&#8217;s loose monetary policies had assisted in pumping the crypto market&#8217;s valuation from $128 billion since March 2020 to as high as $3 trillion in Nov. 2021. Therefore, the evidence of tapering has been influencing investors to limit their exposure in over-pumped markets, including Solana, which had gained nearly 12,500% since March 2020.<\/p>\n<p>As a result, if the crypto market continues declining in the sessions ahead, SOL will also be at risk of validating its head and shoulders setup.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SOLs_short_term_outlook\"><\/span>SOL&#8217;s short term outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While SOL&#8217;s longer timeframe chart leans toward a prolonged bearish setup, its short-term outlook looks comparatively bullish.\u00a0<\/p>\n<p><strong><em>Related:\u00a0Bitcoin dumps to hit six-month lows near $38K<\/em><\/strong><\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/0e1f69d4-fdd0-40b3-b27c-10a081d77af6.png\"><figcaption style=\"text-align: center;\"><em>SOL\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>That is primarily due to two factors. First, SOL price has fallen to a critical support level of $116 that was instrumental in limiting its downside attempts in September 2021. And second, its daily relative strength index (RSI) dropped to below 30 \u2014 a classic buy signal.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bearish-chart-pattern-hints-at-70-solana-sol-price-before-a-possible-oversold-bounce\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bearish chart pattern hints at $70 Solana (SOL) price before a possible oversold bounce &#8221; Solana (SOL) price may fall to $70 a token in the coming weeks as a head and shoulders setup emerged on the daily timeframe and possibly points toward a 45%+ decline. The chart below shows that\u00a0SOL price rallied to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":397873,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvNjUyNzFkODgtMzg0NC00NDMwLWI5MmQtMGJmM2VlZGY2Y2U3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74937,74863,92498,73785],"class_list":["post-397872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-bitcoin-price","tag-cryptocurrencies","tag-solana","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/397872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=397872"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/397872\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/397873"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=397872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=397872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=397872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}