Solana (SOL) is experiencing clear instability after hitting a local high of $223, as it has been trading sideways for the past 4 days between $184 and $193.
Solana (SOL) is currently trading at $177.64, down 5.67% over the past 24 hours, 16.69% compared to a week ago, and down 20.94% from its previous monthly levels.
Technical Analysis: Symmetrical Triangle and Potential Decisive Move
Analysts have pointed to the formation of a symmetrical triangle pattern on the Solana SOL chart, reflecting indecision in the market as buyers and sellers battle for control. A breakout of this pattern is usually preceded by strong price action, supported by high trading volume.
Analysts expect that an upward break above the $214 level could push the price to $299, while a break of the support at $183 could take the price down towards $109.
Current Market Indicators
• Negative Sentiment: Over the past 4 days, market sentiment has been negative, indicating increasing selling pressure.
• Directional Movement Index (DMI): The index showed strong bearish pressure with the +DI falling to 13 and the ADX rising to 23, reflecting increasing bearish momentum.
• Open Positions: Currently, 52% of traders are short selling positions compared to 48% who are long buying positions, reflecting the market’s bias towards bearish expectations.
Possible scenarios
If the downward pressure continues, SOL could drop below $183 with a support level at $175.
On the other hand, if the coin breaks the $214 level, we may witness an upward push towards $299.
This is a crucial stage for Solana's future, as investors closely monitor market developments to make informed decisions.
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