On May 26, Solana started moving lower and it seemed that it was going to hit the bottom. A day prior, Solana had faced the same trend so it was clear that the same trend was continuing. However, the fall on May 26 proved to be a retreat that was broader. The same situation was observed with the entire cryptocurrency industry.
Breakdown of Pennant of SOL Price is Imminent
The data shows that the price of Solana (SOL) went down more than 13%. The dip has brought Solana down to $41.60. This is the lowest price SOL has recorded in the past couple of weeks.
It is being observed that the SOL/USD pair may soon break out from the bear pennant. It has been considered a technical pattern that is classic. If the particular pattern appears, it means it has the potential of pulling the price of a cryptocurrency even lower in the market.
SOL Going through Same Breakdown
If we look at the price trend of Solana, we would notice the same trend. Solana is going through the same breakdown and its price is currently falling below the trend line that is lower. The issue was noticed on May 25 and it is still ongoing.
Given the current circumstances, it is expected that the price of SOL may dip to $23. It suggests that a 45% downtrend may be observed for SOL compared to its price on May 26.
The reaction of the Traders
Nevertheless, the breakdown of pennant has shown up without recording any significant upsurge in the trading volumes. This means that despite the strong indications, the traders are not ready to proceed with the trend. As a result of the traders’ behavior, the lower trend line of the pennant will be retested and will be treated as resistance.
If the traders do not agree with the move and start retaking the trend into their own hands, the pennant setup will end up getting invalidated. If that happens, then the trading price of Solana may hit its 20-day EMA, which would be $57.59. It is expected that the particular price would be the upside target for SOL.
Although the investors may hesitate in the beginning, they may start supporting the trend. Although it may take investors a strong resolution and determination they will eventually start supporting it.
This would be a strong demonstration of the investors in pushing the trend against the pennant breakdown. If all goes well in favor of Solana, then the trading price of SOL may surge to a higher mark. This would help the price of SOL grow up to $79.