Solana price analysis; More chance to jump or fall?



In the weekly market view, Solana has the ability to create several graphic templates, most of which are aimed at reducing prices; But at what level is the goal of each of these models and how far can the price fall?

According to Kevin Telegraph, there is a possibility that a model called Megafon will be created in Solana’s chart and its price will continue to fall by 35%.

The megaphone model in volatile markets consists of at least two downtrend and two uptrend; That is, the candlesticks for the two price floors must be lower than each other, and the candlesticks for the two price peaks must be higher than each other. However, in general, these models are generated by five consecutive oscillating waves, and the last oscillation usually acts as a fault signal.

Solana has been painting a model of a megaphone since the beginning of 2022. The digital currency first tested Megafon’s rising line near $ 140 as its fourth fluctuation and resistance, and when it failed to cross it, it entered a corrective trend.

Solana price analysis;  More chance to jump or fall?
Weekly price chart of Solana.

Due to this model, the downward trend of Solana Token can continue and test the lower trend line of the megaphone as its support. This trend line is close to $ 65 and is about 35% lower than the current price of Solana.

Is it possible that the price of Solana will decrease even more?

If the model of the megaphone is created, the price of Solana may experience a deeper decline after the completion of the fifth wave. Although it is very difficult to find Solana’s next target in this case, traders usually calculate the distance between the two trend lines from the point where the bottom line breaks and determine the next target based on 50 to 60% of its height.

Solana price analysis;  More chance to jump or fall?
Weekly chart of the price of Solana in dollars with a model of a megaphone.

This downtrend will increase the risk that Solana’s price will fall to nearly $ 40 in the coming weeks.

Read also: Introducing 10 models of technical analysis charts that every trader should know

Investigate the uptrend for Solana

On the other hand, if the price of Solana remains above the levels of support, the model of the megaphone may fail and not reach its short-term goal.

As you can see in the chart below, these support levels are the 50-week moving average (EMA 50 – red line of the chart) and the uptrend line (black line of the chart). This uptrend line has always served as a gathering place for retailers in the Solana market. As a result, if the Solana reaches its 50-week moving average and retreats, the megaphone model may lose its credibility.

Solana price analysis;  More chance to jump or fall?
Solana’s weekly price chart in dollars with a 50-week moving average and its uptrend.

We now assume that Solana’s price has fallen below the 50-week moving average and may now be able to jump again after hitting the uptrend line on the chart. In this case, this uptrend line, together with the uptrend line of the megaphone model, can create something like an “uptrend” or a “downlink flag” model, both of which are downward models.

Solana price analysis;  More chance to jump or fall?
Weekly chart of Solana price in dollars with rising or falling pattern.

If the incremental pattern is formed, Solana’s goal will be around $ 60. This goal is achieved by calculating the maximum distance between the upper and lower trend lines of the model and subtracting it from the breakpoint (close to $ 100).

In addition, if a downward pattern is formed, Solana’s goal will be $ 30. This goal is achieved by calculating the height of the previous uptrend of Solana (about $ 60) and reducing it from the breakpoint (about $ 90).

Price analysis of the Solana publication; More chance to jump or fall? appeared first for currency.

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