Solana’s price rose to fame during the H2, 2021 to reach a peak beyond $250, however, the recent price action since the beginning of the year turns extremely bearish. While the possibility of a rebound from the lows just below $50 emerges, the possibility of a steep downtrend hoovers the SOL price rally.
Price has formed continuous peaks at the top, called a ‘head and shoulders’ pattern, called the neckline. Therefore, a marked decline is expected to complete the second shoulder which could pull the price below $30 to retest the neckline.
Whether the drop is a fake breakdown or a bull trap that may dominate the bears for long?
Amid the recent bearish set-up, the SOL price reveals riskier markets driven by the Federal Reserve’s response to rising inflation. The asset closed with gains of 10.5% in weekly trading. Besides, the markets which reacted positively after the latest release of CPI rates also prompted a significant uptrend.
But the market analyst believes the ongoing price rallies are nothing but risky corners referring to the previous market movements. Therefore, a significant drop of more than 75% hovers above the asset which may nullify all the gains, gained in the past couple of days.
In the coming days, SOL price may explore further options for a downside correction towards the multi-year ascending trend support line. In the coming days, if it breaks the trend line, it may fall further.
