- Solana price is close to confirming a massive sell-off.
- Time cycles suggest that a change in direction is coming up – but not until March 21.
- Bulls have a tough road ahead to invalidate any bearish price action.
Solana price is very close to breaking down below one of the strongest bearish patterns in technical analysis: the descending triangle. If sellers can take control and push Solana below the formation, a 40% wipeout is very likely to occur.
Solana price at risk of another major sell-off, but time cycles point to a major rally ahead
Solana price is just a hair away from completing one of the largest percentage drops since its all-time high formed back in November 2021. Its final support level at $80, if broken, could signal a fast crash down to the upper range of the extended 2021 Volume Point Of Control and the 100% Fibonacci expansion in the $50 value area.
If buyers want to invalidate any near-term bearish outlook, they need to close Solana price at or above $102. A close at $102 would put Solana above the single largest collection of resistance levels near its present value. Those resistance levels are:
- The daily Kijun-Sen at $91
- The 50% Fibonacci retracement at $92
- The daily Tenkan-Sen at $93
- The upper trendline of the descending triangle at $98.
- The recent swing high close at $100.
Bulls will achieve a significant step in the road to a new bull run if they can close Solana price at or above $102. However, at $111, the bottom of the Ichimoku Cloud (Senkou Span A) and the 38.2% Fibonacci retracement may halt further advancement. However, the breach of such a vast collection of resistance levels below $102 would likely create a substantial future support zone for bulls in the near future.
SOL/USDT Daily Ichimoku Kinko Hyo Chart
From a time cycle perspective, the Gann Season date of March 21 is quickly approaching. The March 21 date is historically a launching point for major bullish and bearish rallies for cryptocurrencies. If a market has trended lower near March 21, the subsequent price action will likely turn bullish.