💻Solana may drop another 12% in the coming week 💻
Since the beginning of April, Solana has oscillated sideways for over 70% of the time period. This particular range between $162 and $127 has largely acted as the accumulation zone, and SOL has regularly tested the upper limit and lower limit over the past 5 months. On a couple of occasions, it breached above $162, only to drop back within range in ten days.
After the flash crash at the beginning August, the altcoin tested the upper limit of $162 twice, and the traders were hopeful that previous weeks’ retest would trigger a new bullish leg.
That did not pan out, and based on historical market behavior, SOL will potentially retest $127 in the next few days, which is the lower limit of the accumulation zone.
However, it is important to note that each correction down to $127 has taken place within a week of SOL breaking under $150 on previous lows.
If the SOL/USD pair is able to close the daily candle above $140 for next week, a drop down to $127 will likely be avoided. There is also support from the 200-day EMA, which means SOL has a legitimate chance of recovery.
