The growth of Solana has slowed down
On the 4-hour chart, an ascending wedge can be seen. This technical pattern is often considered a bearish signal, indicating a possible trend reversal. It is formed by two converging trend lines. The lower line (support) rises faster than the upper line (resistance), creating a narrowing channel. When the price breaks through the lower line, it confirms a bearish reversal and a possible decline.
Sometimes a bullish breakout can occur, but this happens less frequently. In the case of SOL, it seems that the price is close to breaking through the lower line. If confirmed, the altcoin rally may halt, and the price could drop significantly. Moreover, the Money Flow Index (MFI) reinforces the bearish outlook. This indicator uses price and trading volume to measure the capital flowing in and out of an asset.
An increase in MFI reflects strong buying pressure, while a decrease indicates seller dominance. Currently, the indicator is in a downward trend, reinforcing bearish sentiments. Together with the ascending wedge, this increases the likelihood of a price decline.
