The market sentiments have not seemed to be changed yet as the assets manifest extreme price volatility irrespective of the direction. The patterns formed keep on repeating showcasing the rally may be pre-programmed.
However, the SOL price had taken a sharp U-shaped flip a week ago and raised hopes of breaking through the consolidation. However, the fresh day plunge was fueled by yet another hack on Solana Blockchain where-in 120K wETH were exploited on Wormhole.
With another attack on the Solana network, the price rally appeared to be deeply impacted. The price fell into a deep bearish divergence since the beginning of the present trading day and despite multiple attempts of sustaining itself, the asset was maintained within a downtrend.
Solana Price (SOL) Huge Drop Ahead ?
Currently, from the past couple of hours, the asset appears to have accumulated some buying pressure, yet the intensity is pretty less. And hence may be slashed with just another bearish candle.
Solana price was comfortably consolidating within the middle bands of the Bollinger Bands until it surge to some extent. The surge enabled the price to slice through the parallel channel and move towards the north.
However, the upper Bollinger bands just pushed the price towards the middle bands when it attempted to hit these levels. Further, the middle bands again pushed the price below in an attempt to hit the lower channel.
As a result, the previous day surge is now considered as a ‘fake-out’, but the buyers are still hoping for a notable rally. And hence appeared to have jumped in currently, no doubt in fewer numbers. But have temporarily halted the downtrend for some time.
The SOL price may not undergo a gigantic uptrend in the near future but if it does not work on the security of its platform Sol price may not be trusted anymore by the traders.
Source: https://coinpedia.org/price-analysis/solana-in-a-deep-trouble-can-traders-go-long-on-sol-price-now/