The price of Solana (SOL) has formed a descending price pattern within a strong resistance zone. It is expected to decline towards the support zone at $15 in the near future.
Weekly Outlook:
The price of Solana (SOL) has been decreasing along with a declining resistance trendline since January 2022. During this process, the price has been rejected by this trendline multiple times and reached its lowest point at $8 in December 2022.
Although the price has recovered strongly since then, it has still been unable to break above the horizontal resistance zone at $27 and the long-term resistance trendline. Instead, it has formed a double top pattern within this resistance zone. This is a bearish pattern that often leads to a reversal of the trend to the downside.
Furthermore, it is accompanied by bearish divergence within the RSI indicator. Therefore, the price of SOL is likely to decline towards the support zone at $15, which is formed by the horizontal support area and the 0.618 Fibonacci retracement level.
Short-term Support Breakdown:
The daily chart also shows a similar bearish scenario as the weekly timeframe. It indicates that the price of SOL has broken down below the minor support zone at $20 and is in the process of confirming this level as resistance (highlighted by the red arrow).
If successful, the price of SOL could further decline towards the next minor support zone at $17.
The RSI indicator supports the continuation of the downward move as it remains below 50 and slopes downward.
Conclusion:
The most probable outlook suggests that the price of SOL will continue to decline in the near future. The nearest target is $17 and potentially even lower towards $15.
