There is a serious uncertainty in the crypto money markets, but this situation negatively affects altcoins the most. Bitcoin (BTC) has started making movements in excess of $1000 on hourly candles. In altcoins, danger bells are ringing in the bottom supports. Although Solana (SOL) is sending signs of recovery over the weekend, the end may not be as we expected.
Solana (SOL) Investors Attention
The recovery seen in the Solana (SOL) market this weekend has been exhausted halfway through as the price dropped below $90 from $96 on Feb. 21. In doing so, the SOL price techniques now form a classic bearish reversal setup.
The technical pattern, called the head-and-shoulders (H&S), occurs when the price forms three consecutive highs above a common support level (called the neckline). As it typically turns out, the pattern’s middle peak, called the “head,” comes taller than the other two peaks, called the left and right shoulders, which have similar heights.
The H&S pattern tends to fall more when its prices drop precisely below the neckline (length equal to the maximum distance between the head and neckline). As a result, Solana, which has created a similar technical structure recently, is at risk of losing $60, or almost 30%.
Bear Flag on Solana Chart
In August 2021, the $60 level acted as an important support and the price started its $250 journey from this level. The other major risk threatening Solana investors is the Bear Flag formed on the chart.
In doing so, it risks falling as long as the length of the previous downtrend, called the “flagpole,” when measured from the breakout point, as shown in the chart below. Below is the daily price chart of SOL/USD with bear flag setup.
As a result, Solana (SOL) risks loosening to $60 levels if it moves in line with the pattern. Of course, the movements of Bitcoin in the coming days will play an important role in triggering this.