BTC Price Fluctuations Affect Altcoins and SOL Coin Analysis.
The fluctuation in BTC price brings surprising results for altcoins, and this has been the case for a long time. BTC experiences rapid declines after slow rises, wearing down a significant portion of altcoins. Buyers see price increases as short-term selling opportunities. Of course, this cannot be expected to continue forever. So, what is the latest situation with SOL Coin?
Solana (SOL).
On March 18, the price started trading within a symmetrical triangle and got stuck. This formation, indicating consolidation, has been ongoing for a long time due to the weakness in BTC price. When the formation breaks up or down, it indicates the end of the trend, and the movement is expected to accelerate in the direction of the break.
SOL Coin price broke out of this on July 19 with the news of the spot SOL ETF and the recovery of BTC price. Although investors expected a stronger rally, Bitcoin again limited the movement as it has for months. On July 29, the price dropped to $182.5 and seems to continue its decline.
If the selling continues, a deeper dip may occur. The daily loss is around 7%. For SOL Coin, which is preparing to retest the breakout level, there are 2 scenarios. Either the breakout level will be lost, and we will see a downward break with larger sales, or the price will start a new jump from the breakout point, targeting new peaks.
If the price lingers at the breakout level for a long time, the view that the upward breakout is invalidated gains strength, and buyers may support increased sales due to the increased risk.
SOL Coin Predictions.
The Parabolic Stop and Reverse (SAR) indicator appears in favor of the downtrend. The CMF confirms the decrease in liquidity inflow along with the price easing. The weakening of cash inflow during the decline signals that sales will accelerate. A return to the symmetrical triangle suggests that consolidation will continue boringly or a downward break is expected. This points to $154.2 as the first stop.