VOT Research Desk
In the past 48 hours, the Solana price has had a sharp drop that has caused it to go below a few important levels.
A multi-year pessimistic forecast that might drive SOL to single-digit levels has been sparked by this event.
The recent events between Binance and FTX CEOs, Changpeng Zhao (CZ) and Sam Bankman-Fried (SBF), respectively, are the primary cause of this volatility and extreme bearishness.
The FTX exchange had significant withdrawals and a liquidity crisis following Coindesk’s first story and CZ’s remarks; as a result, the two industry titans ultimately agreed to a “strategic transaction.”
Although Binance is buying FTX, the specifics of the transactions are kept under wraps. Between April 2021 and August 22 of the same year, Solana Price built up a head-and-shoulders configuration.
Three peaks make up this complex structure, each with the appearance of a head and two shoulders.
This event signals the conclusion of an upward trend and the beginning of a downward trend.
The neckline, which links the lowest points of the pattern, and the highest point of the head are measured in order to determine the setup’s 88% target.
Solana Technical Analysis
It’s interesting to see that the volatility in the second week of November caused Solana’s price to drop 36% and break below the neckline.
The objective is $3.75 when the 88% downswing is added to the breakout point at $32.18. This analysis is totally speculative.
The $4.42 support level, though, may stop this decline in its tracks.
Investors should prepare for a little rally in the future that might raise the price of Solana to $25. With $15.9 as the goal, this location is a decent opportunity to start another short position.
The volume profile bulges out at this level, indicating the presence of buyers nearby.
If $15.9 breaks down, there might be a sharp decline to the end price of $4.42.
