Will Solana Price Correction Breach $150 Support?

The cryptocurrency market extended its leg down on Friday following the Bitcoin price fall to the day’s low of $66000. This selling pressure extended the correction trend for most of the major altcoins including Solana. The SOL price is down 5% today bolstering the formation of a reversal pattern called double top. Will this bearish setup amid broader market correction push SOL coin below $150?

Also Read: Solana Meme Coin MEW Rallies 50% Amid Major Listing Announcement

Solana Price Faces Double Top Pattern and Network Efficiency Concerns

In mid-March, the cryptocurrency market entered a new correction trend as Bitcoin reverted from its new high of $73800. As a result, the Solana price trajectory turned sideways below the $205 resistance. Within three weeks, the coin price was rejected twice from overhead resistance indicating the sellers are actively defending this barrier.

Furthermore, an analysis of the daily chart shows the double top pattern formation—a chart setup commonly observed at market tops before a sharp reversal. Amid the current market sell-off, the SOL price of 15% from the aforementioned top its reach current trading price of $173

In a recent critique highlighted by Kyledoops, the Solana network is facing substantial scrutiny due to significant network congestion and an alarming 76.8% transaction failure rate. The data, sourced from a Dune Analytics dashboard, reveals a troubling trend in the network’s inability to handle non-vote transactions—those occurring between wallets and smart contracts—effectively. 

Solana users demand better: network congestion and transaction failures are unbearable.$SOL must step up to meet the demands of a bullish market with its current 76.8% transaction failure rate. pic.twitter.com/F0vVpUtyMj

— Kyledoops (@kyledoops) April 5, 2024

This surge in failed transactions calls for urgent attention and action from the Solana developers to bolster the network’s capacity and reliability to meet the high demands of a bullish market and maintain user trust.

Also Read: Solana DEX Jupiter Announces Major Upgrade, JUP Price To Rally?

Key Levels to Watch Amid Market Correction

Under the influence of a bearish pattern, the Solana coin plunged 6% to challenge the neckline support of $163. A successful breakdown will accelerate the selling pressure and extend the correction trend to $120.

Conversely, a reversal from $163 support will weaken the bearish thesis and continue sideways action.

Technical Indicator

• Related Strength index: A notable bearish divergence between the two peaks for a double top pattern indicates the sellers strengthening their grip over the asset. 
• Exponential Moving Average: For the past six months, the 50-day EMA slope has defended the SOL price during market corrections.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.