- Solana price paints a blood-red picture for the end of the year.
- SOL is unable to overcome current bearish pressures, set for more downturns.
- As Solana price is missing the Christmas party, a 34% meltdown is on the cards.
Solana (SOL) price action is in distress currently as price action is respecting a bearish triangle that could soon hit its point of consolidation. Once that is done, a bearish breakout looks inevitable as selling pressure increases and given analysts projections of a harsh recession in 2023. From a purely technical point of view, pricing in such a recession could see SOL hit sub $1.00, from near $7.25 for now.
Solana price sees bears calculating a recession premium
Solana price is getting gutted as markets are still trying to wrap their heads around the projections and trading plans for 2023. After the latest US data with the PCE Deflator – an alternative inflation measurement – remained unmoved, the US Federal Reserve will need to do more. Several trading plans had to be thrown in the bin after that as it became clear that the Fed would keep hiking throughout most of 2023, squeezing more oxygen out of the economy to get inflation back to 2%.
SOL is set to tank further as the bearish triangle marked on the chart in yellow is clearly breaking below its base level at $10.94. That level is November's low; once broken, more downside room is granted. Pricing in at least another three interest rate hikes means roughly another $3 needs to be deducted from the current price action, meaning that roughly $7.26 is the next support level to be seen.
SOL/USD daily chart
Any upside could come from a bounce and a break above the sloping side of the triangle. Once that is broken to the upside, expect some follow-through by day traders jumping on the break. In a range-trade pattern, $15.07 looks to be the maximum upside potential to be reached, constituting a 34% upside gain.
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