Is Solana Dead, or Is It Just Panic Selling?

Solana price prediction: the Solana coin price was one the most affected coin from the FTX crypto exchange collapse. The coin’s market value witnessed a sudden drop from $37.2 to $13 in early November. Following this fall, the price action went sideways, revealing a bullish reversal pattern.

Key points

• The ongoing consolidation in Solana reveals an inverted head and shoulder pattern.
• The daily-RSI slope shows an evident divergence, bolstering price recovery
• The 24-hour trading volume in the Solana coin is $286. Million, indicating a 41% gain.

Is Solana dead?

The FTX crypto exchange was one of the prominent supporters of the Solana ecosystem and an early investor in Serum(DeFi platform on Solana). As a result, the FTX crash caused a huge sell-off in SOL price. Moreover, the weak market condition and the recent announcement from Binance to terminate strategy trading services for Serum(SRM) pairs only intensified the selling pressure on Solana.

However, Solana is a highly scalable blockchain network that supports some of the successive DeFi projects. Moreover, the blockchain continues to carry out fast and cost-efficient transactions and can be a suitable platform for mainstream-oriented applications such as NFT, the crypto gaming sector, etc. Thus, is Solana dead? The answer is no.

Having said that, the platform needs to resolve the outage issue, which has occurred multiple times this year.

Price Analysis

Source-Digitalcoinprice

The Solana price has been walking a sideways path for over three weeks. During this consolidation, the price action has received significant support from the $13.3 and $11 marks which currently prevent the altcoin from further loss.      

Moreover, the SOL price suggests the formation of an inverted head and shoulder pattern in the daily time frame chart. This bullish reversal pattern is often spotted at the market bottom and indicates a positive shift in market sentiment.

By the press time, the Solana price traded at $13.5 and tried to sustain above the $13 support. If the buyers manage to hold the above-aforementioned support, the altcoin may rise 10% to hit the $15 neckline resistance.

An upside breakout from the neckline barrier will release the trapped bullish momentum and lead to a directional price rally. This technical setup offers a potential target of the same distance from the lowest swing low to the neckline shot from the breakout point.

Thus, completion of the inverted H&S pattern, the Solana coin price should to the $18 psychological mark.

Conversely, a daily candlestick closing below $13 will offset the bullish thesis.

Technical indicator

RSI: the daily-RSI slope rising amid a sideways price action indicates the buying momentum is rising at lower levels. This bullish divergence supports the breakout from the $15 resistance.

EMAs: the large gap between downsloping crucial EMAs(20,05, 100, and 200) accentuates an established downtrend.

Solana price intraday level

• Spot price: $13.7
• Trend: Bullish
• Volatility: Medium
• Resistance levels: $15 and $18.
• Support levels: $13 and $11.5