{"id":477996,"date":"2022-07-26T15:14:49","date_gmt":"2022-07-26T12:14:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/solana-eyes-40-jump-in-august-despite-long-term-bearish-signals\/"},"modified":"2022-07-26T15:14:49","modified_gmt":"2022-07-26T12:14:49","slug":"solana-eyes-40-jump-in-august-despite-long-term-bearish-signals","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/solana-eyes-40-jump-in-august-despite-long-term-bearish-signals\/","title":{"rendered":"#Solana eyes 40% jump in August despite long-term bearish signals"},"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-6a3b0db02d838\" 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-6a3b0db02d838\" 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\/solana-eyes-40-jump-in-august-despite-long-term-bearish-signals\/#%E2%80%9CSolana_eyes_40_jump_in_August_despite_long-term_bearish_signals%E2%80%9D\" >&#8220;Solana eyes 40% jump in August despite long-term bearish signals&#8221;<\/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\/solana-eyes-40-jump-in-august-despite-long-term-bearish-signals\/#Solana_network_performance_still_a_concern_%E2%80%94_researcher\" >Solana network performance still a concern \u2014 researcher<\/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\/solana-eyes-40-jump-in-august-despite-long-term-bearish-signals\/#Bear_flag_breakdown\" >Bear flag breakdown?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CSolana_eyes_40_jump_in_August_despite_long-term_bearish_signals%E2%80%9D\"><\/span>&#8220;Solana eyes 40% jump in August despite long-term bearish signals&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYjY1MjZjMzMtZjM0ZS00OTdhLWFhZjUtZGZjZDBiY2RlNDQ2LmpwZw==.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                The bear flag setup for SOL price could result in another interim relief rally amid macro headwinds.\n                &lt;p&gt;Solana (SOL) dipped to a two-week low at around $35.50 on July 26, mirroring downside moves elsewhere in the crypto market. Nonetheless, technicals suggests that Solana's price flirts with the prospects of rising 40% in August.&lt;\/p&gt;&lt;h2&gt;SOL hits key inflection point&lt;\/h2&gt;&lt;p&gt;Ironically, the bullish setup for Solana emerges out of a classic bearish continuation pattern.\n<\/code><\/pre>\n<p>On the daily chart, SOL&#8217;s price has been consolidating inside 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 a &#8220;bear flag,&#8221; a technical pattern that develops during a downtrend and gets resolved after the instrument exits it with further price drops.<\/p>\n<p>The so-called bear flag breakdown has not happened yet. Instead, SOL has been holding the lower trendline as support, raising possibilities of a sharp rebound toward the upper trendline, as illustrated in the chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/04e467f7-f85c-4aae-8d03-d912d6bc0b97.png\" \/><figcaption style=\"text-align: center\"><em>SOL\/USD daily price chart featuring &#8216;bear flag.&#8217; Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The rebound setup exposes SOL to a potential rally toward $49.50 in August, up 40% from today&#8217;s price. The $49-$50 level had served as both support and resistance in May.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Solana_network_performance_still_a_concern_%E2%80%94_researcher\"><\/span>Solana network performance still a concern \u2014 researcher<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The potential bear flag rebound will serve as interim relief to Solana bulls, given SOL&#8217;s overall bias remains skewed to the downside.<\/p>\n<p>Macro forces such as the Fed&#8217;s hawkish monetary policies and the collapse of the $40 billion &#8220;algorithmic stablecoin&#8221; project Terra have sent the crypto market into a tailspin. As a result, Solana, like any other risky asset, has suffered declines across its financial and network usage metrics in 2022.<\/p>\n<p>For instance, the average number of daily transactions atop the Solana blockchain plunged by 17.6% in Q2\/2022 versus the previous quarter, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/messari.io\/article\/state-of-solana-q2-2022\">data<\/a> from Messari. <\/p>\n<p>Meanwhile, Solana&#8217;s revenue dropped 44.4% quarter-on-quarter (also because of recurring network outages).<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/97cd166f-3abe-4c80-8196-2ef8af3d0a99.jpg\" \/><figcaption style=\"text-align: center\"><em>Solana Financial Overview Q2\/2022. Source: Messari<\/em><\/figcaption><\/figure>\n<p>&#8220;As seen in 2021 and throughout Q1 and Q2, degraded network performance decreases network usage and reduces the network\u2019s continued flow of revenue,&#8221; noted James Trautman, a researcher at Messari, adding: <\/p>\n<blockquote><p>&#8220;If Solana were to continue to experience degraded performance that lasts for a material amount of time, a resulting drag on fundamental usage may catalyze volatility and drag on network value.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bear_flag_breakdown\"><\/span>Bear flag breakdown?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The mix of macro and network-related concerns risk triggering the bear flag breakdown by September.<\/p>\n<p><strong><em>Related:\u00a0All \u2018Ethereum killers\u2019 will fail: Blockdaemon\u2019s Freddy Zwanzger<\/em><\/strong><\/p>\n<p>SOL&#8217;s decisive close below the flag&#8217;s lower trendline means more downside is likely to the $21-$23 region, according to the technical setup illustrated below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/e8a43002-dda4-4845-9ec0-64b0505c158a.png\" \/><figcaption style=\"text-align: center\"><em>SOL\/USD daily price chart featuring bear flag breakdown setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In other words, a 35%-38% drop from current price levels.<\/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<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><\/p>\n<\/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\/solana-eyes-40-jump-in-august-despite-long-term-bearish-signals\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Solana eyes 40% jump in August despite long-term bearish signals&#8221; The bear flag setup for SOL price could result in another interim relief rally amid macro headwinds. &lt;p&gt;Solana (SOL) dipped to a two-week low at around $35.50 on July 26, mirroring downside moves elsewhere in the crypto market. Nonetheless, technicals suggests that Solana&#8217;s price flirts&#8230;<\/p>\n","protected":false},"author":1,"featured_media":477997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYjY1MjZjMzMtZjM0ZS00OTdhLWFhZjUtZGZjZDBiY2RlNDQ2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-477996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/477996","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=477996"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/477996\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/477997"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=477996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=477996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=477996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}