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How Solana price shockingly points to a $13 target

  • Solana price follows the bearish fractal issued at the beginning of the summer.
  • SOL price shows a steep decline upon losing support from the 8-day simple moving average.
  • Invalidation of the bearish thesis is a closing candle above $0.54.

Solana price aligns with a bearish fractal scenario. If the fractal continues to play out, the SOL price could fall as low as $13. 

Solana price mirrors the bearish fractal

Solana price is displaying disappointing technicals going into the final weekend of August; Since the start of the summer, cautionary techniques were implemented to gauge which was indeed in control of the centralized smart token's future trend. Specifically, two fractals of SOL's previous price action were utilized to decipher if the Solana price consolidation would resolve a bullish or a bearish trend.

On August 13, the Solana price rallied towards a high at $46.50, which had many in the crypto space believing in the start of a new bull run. Utilizing the fractal wave was essential in qualifying the potential buy signals as an "unnecessary" risk. The bearish fractal kicked in full gear just days later, trapping breakout bulls and plummeting in free-fall fashion.

tm/sol.9.27.22

SOL/USDT Bull vs Bearish Fractal Case Study

Solana currently auctions at $31.50, 33% lower than where prices stood just a week prior. Although the decline is already quite devastating, if the fractal continues to pan out, the SOL price could fall as low as $13. Such a decline would result in an additional 60% decrease from the current market value. 

Therefore Solana price is considered a high-risk digital currency until more chart evidence can argue otherwise. Invalidation of the downtrend scenario is a breach and closing candle above $54. If the bulls can hurdle this level, they could kick off the anticipated Solana bull that everyone is hoping for with bullish targets well above $200. Such a move would result in up to a 3x increase from today's market value.

In the following video, our analysts deep dive into the price action of Solana, analyzing key levels of interest in the market - FXStreet Team

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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