Solana Risk (SOL) significant price correction in the coming weeks due to a classic bearish reversal pattern.
35% SOL price correction coming?
On the 3-day chart, the price of SOL has formed an ascending wedge, confirmed by two ascending and converging trend lines and decreasing trading volumes at the same time.
Rising wedges usually lead to breakouts, which resolve after the asset’s price breaks below the lower trendline. If the price follows the breakout case, it could fall to the maximum distance between the upper and lower trend lines of the wedge.
SOL is far from a breakout but is trading in a descending wedge range as seen in the chart below. The signal is trending for an immediate pullback from the wedge’s upper trendline, with its intermediate upside target at the lower trendline around $45.
It is likely to fall towards $30 if the price crosses the lower trend along with the increase in trading volume. In other words, a 35% drop in price by September.
Conversely, a retracement of the lower trendline could look at SOL immediately back towards the peak of the wedge around $53.50.
A decisive break above the upper trendline would invalidate the bearish reversal pattern, if SOL reaches the 50-3D exponential moving average (50-3D EMA; the red wave) near $58.
$SOL daily closing over $45
25% entry size (market size carry)
will stop close below $42 or target $56-60 https://t.co/US0ucViHN6 pic.twitter.com/xo7zfDGMrZ
– Pentoshi (leading cattle to butcher) (@ Pentosh1) August 13, 2022
SOL: daily close above $45. 25% volume entry (mark market volume) will stop close below $42 or target $56-60 https://t.co/US0ucViHN6 pic.twitter.com/xo7zfDGMrZ – Pentoshi (cattle leading butchers) (@ Pentosh1) August 13, 2022
The fight against mental confusion
Solana’s increasing isolation pattern comes as it faces a flurry of negative events, including repeated network outages, concerns about massive network centralization, and widespread exploitation targeting the Solana wallet.
However, SOL was up nearly 40% in August, similar to other cryptocurrencies that have gained around 11% on average since the beginning of the month.
Part of Solana’s earnings as well after his team quickly explained that Slope, a Web3 wallet provider, was solely responsible for exploiting $8 million worth of cryptocurrency wallets, including Solana’s.
After investigation by developers, ecosystem teams, and security auditors, it appears that the affected addresses were created, imported, or used at some point in the Fana mobile wallet applications. 1/2
— Solana Status (@SolanaStatus) August 3, 2022
After investigation by developers, ecosystem teams, and security auditors, it appears that the affected addresses were created, imported, or used in Fana mobile wallet apps at some point. 1/2 — Solana Status (@SolanaStatus) August 3, 2022
Likewise, Solana released its first “Validator Health Report” on August 10 in response to allegations that its network is highly centralized. The report states that Solana’s PoH (proof of history) blockchain has more than 1,900 block producing nodes worldwide.
Nearly 88% of these nodes are operated by independent entities, the report adds.
SOL/USD daily price chart. Source: Trade View
In addition, in May, Solana developers focused on implementing the first stages of their Mainnet Beta v1.10 series, introducing QUIC and packet quality of service (QoS) according to stake weights and priorities.
Also read: Is your SOL safe? What we know about Solana hack | Find out now on The Market Report
“It seems that the network showed signs of stabilization after version 1.10, as transaction fees decreased and the number of daily transactions trended downward between mid-May and the end of June,” researcher James Trautman comments. noted by Messari, in his Solana Q2 report.
Solana’s transactions per second (TPS) also improved, going from ~700 during network outages to over 3000 after the v1.10 rollout began. Trautman added:
“If v1.10 and later implementations continue to support ecosystem stability and growth strategies, the fundamentals will likely shift in a positive direction, and so will the value of the network. »
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