{"id":453209,"date":"2022-05-26T19:22:00","date_gmt":"2022-05-26T16:22:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-heres-why\/"},"modified":"2022-05-26T19:22:00","modified_gmt":"2022-05-26T16:22:00","slug":"spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-heres-why","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-heres-why\/","title":{"rendered":"# Spooky Solana breakdown begins with SOL price facing a potential 45% drop \u2014 Here&#8217;s why"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 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-6a349e3fa270f\" 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-6a349e3fa270f\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-heres-why\/#%E2%80%9D_Spooky_Solana_breakdown_begins_with_SOL_price_facing_a_potential_45_drop_%E2%80%94_Heres_why_%E2%80%9C\" >&#8221; Spooky Solana breakdown begins with SOL price facing a potential 45% drop \u2014 Here&#8217;s why &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-heres-why\/#SOL_price_pennant_breakdown_underway\" >SOL price pennant breakdown underway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-heres-why\/#Solana_price_support_confluence\" >Solana price support confluence<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Spooky_Solana_breakdown_begins_with_SOL_price_facing_a_potential_45_drop_%E2%80%94_Heres_why_%E2%80%9C\"><\/span>&#8221; Spooky Solana breakdown begins with SOL price facing a potential 45% drop \u2014 Here&#8217;s why &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Solana (SOL) dropped on May 26, continuing its decline from the previous day amid a broader retreat across the crypto market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SOL_price_pennant_breakdown_underway\"><\/span>SOL price pennant breakdown underway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SOL price fell by over 13% to around $41.60, its lowest level in almost two weeks. Notably, the SOL\/USD pair also broke out of what <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 be like a &#8220;bear pennant,&#8221; a classic technical pattern whose occurrences typically precede additional downside moves in a market.<\/p>\n<p>In detail, bear pennants appear when the price trades inside a range defined by a falling trendline resistance and rising trendline support. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/e2d11598-dcad-41b5-b7a0-24a4cbbbbd90.jpeg\"><figcaption style=\"text-align: center;\"><em>Bear pennant pattern. Source: ThinkMarkets<\/em><\/figcaption><\/figure>\n<p>These patterns resolve after the price breaks below the lower trendline, accompanied by higher volumes. As a rule of technical analysis, traders decide the pennant&#8217;s profit target after adding the length of the prior&#8217;s leg lower (called &#8220;flagpole&#8221;) to the breakdown point.<\/p>\n<p>SOL has been undergoing a similar breakdown after closing below its pennant&#8217;s lower trendline on May 25, as shown below. In theory, Solana&#8217;s profit target comes to be near $23, down about 45% from May 26&#8217;s price.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/de446e6f-9016-4c6d-bcfa-b6a47f3fc4f4.png\"><figcaption style=\"text-align: center;\"><em>SOL\/USD daily price chart featuring &#8216;bear pennant&#8217; setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Nonetheless, SOL&#8217;s bear pennant breakdown appears without a spike in trading volumes, suggesting that traders are not fully convinced with the move.\u00a0That could prompt the token to retest the pennant&#8217;s lower trendline as resistance. <\/p>\n<p>Moreover, a successful retaking of the trendline as support risks invalidating the bear pennant setup while bringing the 20-day exponential moving average (20-day EMA; the green wave) near $57.59 in proximity as the next upside target. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/dc98172a-229c-48bd-a419-03e4aabaa101.png\"><\/figure>\n<p>Conversely, a pullback could keep SOL&#8217;s near-$23 profit target in view, with $35.50\u2014the May 12 price floor that preceded a sharp rebound\u2014serving as interim support.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Solana_price_support_confluence\"><\/span>Solana price support confluence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SOL also trades near a support confluence, comprising multi-month horizontal and rising trendlines.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/81d671b2-0c54-48c7-92b3-238e8ac74392.png\"><figcaption style=\"text-align: center;\"><em>SOL\/USD weekly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The horizontal trendline near $45.75 served as resistance during the April\u2013August 2021 session and later flipped to become support between January 2022 and March 2022. Simultaneously, the rising trendline has been capping SOL&#8217;s extended bearish attempts since March 2021.<\/p>\n<p><strong><em>Related:\u00a0Assuming Bitcoin plays nice, higher timeframe analysis points to $90 Solana (SOL) price<\/em><\/strong><\/p>\n<p>As the two trendlines converge, they could become a psychological entry point for investors with a long-term upside outlook. That would mean SOL rebounding towards its next upside target near $79, which also coincides with a multi-month falling trendline resistance.<\/p>\n<p>On the other hand, a continued selloff in the Solana market would have SOL risk another massive decline, as discussed in the bear pennant setup above.<\/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\/spooky-solana-breakdown-begins-with-sol-price-facing-a-potential-45-drop-here-s-why\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Spooky Solana breakdown begins with SOL price facing a potential 45% drop \u2014 Here&#8217;s why &#8220; Solana (SOL) dropped on May 26, continuing its decline from the previous day amid a broader retreat across the crypto market. SOL price pennant breakdown underway SOL price fell by over 13% to around $41.60, its lowest level&#8230;<\/p>\n","protected":false},"author":1,"featured_media":453210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNzYxNjQyNjktNzliMy00NDI4LWFhMGUtY2JjZjRhMGFkMTJkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74863,81262,74939,92498,78261,73785],"class_list":["post-453209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-cryptocurrencies","tag-cryptomarket","tag-market-analysis","tag-solana","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453209","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=453209"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/453210"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=453209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=453209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=453209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}