A two-week low was reached on July 26 at roughly $35.50 for Solana (SOL), which was in line with other cryptocurrency markets. It is still technically possible for Solana’s price to rise by 40% in August, based on these indicators.-
Although the negative continuation pattern for Solana is evident, the bullish setup for the stock arises out of it.
There has been a “bear flag” formation on SOL’s daily chart, which occurs when an instrument’s price decreases and then recovers when it breaks out of the “bear flag.”
As of this writing, the so-called bear flag collapse has not taken place. This chart shows that if SOL can hold on to the lower trendline as support, it might make an immediate move back toward the higher trendline.
SOL might rise to $49.50 in August, a 40% increase from today’s price, according to the rebound setup. In May, the $49-$50 range had functioned as a support and a barrier.
As long as Solana’s overall bias remains negative, bulls will be relieved by a possible bear flag comeback.
For example, macroeconomic issues such as rising interest rates and a “algorithmic stablecoin,” Terra, which was valued at $40 billion, have thrown crypto markets into a spiral. Since Solana’s financial and network usage indicators have declined in 2022, like any other hazardous asset, as a consequence,
The average daily number of Solana blockchain transactions, for example, decreased by 17.6 percent in Q2/2022 compared to the previous quarter, according to Messari statistics.
Quarter-on-quarter, Solana’s sales fell by 44.4%. (also because of recurring network outages).
Deteriorated network performance has a negative impact on network use and income generation, according to Messari researcher James Trautman.
It’s possible that if Solana’s performance degrades for an extended period of time, it might have a negative impact on network value and volatility.
25 Jan 2023
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