Solana (SOL) market failure this weekend was halfway exhausted as the price fell below the $90 level from the $96 high on February 21. By doing so, SOL price techniques are now risking setting up a classic bearish reversal.
Solana’s price risks falling to $60
A technical pattern called Head and Shoulders (H&S) occurs when price makes three consecutive tops above a common support level (called the neckline). As usual, the top-middle part of the pattern, called the “head”, will be longer than the other two peaks, the right and left shoulder, which will have the same height.
The H&S pattern tends to push prices down – with a length equal to the maximum distance from the head to the neck – when it first breaks below the neck. As a result, Solana, which recently formed a similar tech architecture, is at risk of slipping to $60, or roughly 30%.
SOL / USD daily price chart in the form of a head and shoulders. Source: Trading View
Interestingly, H&S’s lower target near $60 also provided support in August 2021, before Solana price surged to an all-time high of more than $250.
Bear flags increase the risk of falls
The stakes for Solana’s survival during a period of new big sales are also increased by the “bear pennant” art style.
Related Topics: Bottom Forward? Solana Draws Her First ‘Death Cross’ As SOL Loses 50% In January
In particular, SOL price broke through a bearish continuation setup. In doing so, it now risks falling along its previous downtrend, which is referred to as the “flagpole” when measured from the point of the eruption, as shown in the chart below.
Daily SOL/USD price chart with bear flags set. Source: Trading View
As a result, the SOL bearing pennant breakout risks pushing the price to $60 or less, as in the H&S pattern.