According to U.Today, well-known crypto analyst Ali Martinez has identified a concerning pattern on the price chart of Solana (SOL), the fourth-largest altcoin in the market. Martinez noted that the hourly chart suggests Solana might be forming a head and shoulders pattern, which could indicate a potential price correction down to $122. This would represent a 17% decline from its current levels.
A head and shoulders pattern is a technical analysis formation that resembles two smaller peaks with a larger peak in the middle. When the price falls below the neckline, which connects the bottoms of the shoulders, it often signals a downward trend. Martinez's analysis indicates that a drop below $141 could trigger this correction, potentially sending SOL to $122.
The pattern began to emerge in August, starting in the latter half of the first week. After Solana's price surged to $163, the right shoulder of the pattern started to form, marking a critical juncture for the cryptocurrency. If Martinez's prediction holds true, this period could be crucial for Solana, which is a significant player in the crypto market with numerous other cryptocurrencies in its ecosystem, many of which have multi-billion dollar market caps.