Solana price sets the stage for 27% crash as SOL bulls hit a dead end
|- Solana price is approaching a massive resistance area, suggesting the end of the line for bulls.
- Investors can expect SOL to retrace 27% to the daily demand zone, extending from $78.76 to $65.91.
- A daily candlestick close above $144.70 will invalidate the bearish thesis.
Solana price has been quick to recover from the crash seen on January 20 and January 22. Since then bulls have made a comeback and SOL has recuperated most of its losses, the existence of tough resistence up ahead, however, suggests the uptrend is about to end and reverse.
Solana price to pull a 180
Solana price has seen a 40% ascent over the past eight days and is currently hovering below the resistance barrier, extending from $115.51 to $144.70. This barrier is known as a bearish breaker and formed after SOL breached a previously formed demand zone.
Any move that pushes Solana price to reenter this flipped demand zone will face massive selling pressure from underwater investors, making it an excellent spot to go short. Investors can short SOL at $115 and expect a 27% crash to retest the demand zone, extending from $65.91 to $78.75.
Market participants can book profits at or just above $78.75, which will yield them a gain of at least 27%.
There is a chance that bears could trigger a crash just before SOL retests the breaker’s lower limit at $115.51 and investors should watch out for a sudden spike in selling pressure for signs such a capitualtion is beginning.
SOL/USDT 1-day chart
While the existence of the breaker supports a bearish outlook, a sudden spike in buying pressure that pushes Solana price to post a daily candlestick close above $144.70 will create a higher high that may change the outlook.
This development will skew the odds in the bulls’ favor and invalidate the bullish thesis. In such a situation, investors can expect Solana price to continue heading higher and tag the $174.37 weekly resistance barrier.
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