Solana (SOL), the world’s fifth-biggest cryptocurrency looks to crash as it has broken down a crucial bearish price action pattern. According to price action and technical analysis, SOL has recently experienced a breakdown of bearish head-and-shoulder price action patterns in a 4-hour time frame.
Solana Price Prediction for August 2024
If SOL closes a 4-hour candle below $137.5, there is a high possibility that SOL could fall another 7%-8% to $125 in a few hours or the coming days. Based on past analysis, whenever the assets give a breakdown of head-and-should pattern they always tend to experience significant price drops.
However, this time there is a similar anticipation from the current SOL’s breakdown. With this breakdown, SOL falls below the 200 Exponential Moving Average (EMA) on a daily time frame. The SOL price below the 200 EMA indicates bearishness.
Solana Price Analysis
At press time, SOL is trading near $138.2 and has experienced a price drop of over 5% in the last 24 hours. Meanwhile, its trading volume has increased by 50% during the same period. This increase in trading volume is potentially caused due to fear and bearish market sentiment.
On the other hand, SOL’s open interest has declined by 1.5% in the last 24 hours, indicating lower interest from traders and investors.
Major Liquidation Levels
As of now, SOL’s major liquidation levels are near $136.23 on the lower side and $142 on the upper side, according to the on-chain analytic firm CoinGlass.
If the market sentiment remains bearish and SOL falls to the $136.23 level, nearly $67.70 million worth of long positions will be liquidated, which math create heavy selling pressure. Conversely, if the sentiment changes and SOL rises to the $142 level, nearly $36.40 million worth of short position will be liquidated.
Currently, the market sentiment is bearish and the overall cryptocurrency market is down by 2.5%. Whereas, the top assets including Bitcoin (BTC), Ethereum (ETH), and BNB (BNB) experienced a price decline of over 2.2%, 2.6%, and 2.8%, respectively, in the last 24 hours.
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