Solana At A Crux: Will SOL Crash To $120 Accelerated By These Factors?
15 Agosto 2024 - 4:30AM
NEWSBTC
Solana remains one of the top-performing crypto assets over the
past year. Even though there is a retracement from the 2024 highs,
the coin is still multiples higher than the 2022 lows. Traders are
upbeat about what lies ahead, with some convinced the coin will
easily break $260 and register all-time highs in the coming months.
Like Bitcoin, Ethereum, and other top altcoins like Cardano, SOL
faces determined sellers. From the daily chart, SOL is moving
sideways in a possible accumulation, considering the current
primary trend remains upward. However, on lower time frames, one
trader thinks SOL might struggle in the coming few sessions. SOL
Holders To Prepare For More Pain? Taking to X has picked out a head
and short formation in the hourly chart. Technically, this
candlestick pattern is associated with weakness. Of note is that
this formation prints when the coin consolidates inside the bear
range from July 28 through August 5. Related Reading: HODLing
Resurgence? 374,000 Bitcoin Transfer Ignites Crypto Recovery From
the daily chart, SOL faces strong resistance at an August 8 high of
$162. On the lower end, support is at $142. The sideways movement
and fluctuation inside this range have formed a bear flag–another
selling signal, especially if sellers of late July and early August
press on. In the hourly chart, the immediate resistance is around
$150, marking the tip of the head. However, the top of the shoulder
is at around $146. Meanwhile, the baseline of this pattern is at
$142, coinciding with the critical support in the daily chart.
Therefore, reading from the above candlestick formation means that
traders should prepare for more pain unless Solana bulls push
higher. A break below $142 in the daily chart sets the ball rolling
for aggressive sellers targeting June and July lows of around $120.
Solana Challenges: Centralization Claims, High Transaction
Processing Failure Rate The upside momentum, looking at other
developments besides candlestick formation, is fizzling out. Last
week, a severe security flaw was discovered and quickly patched.
Related Reading: Bitcoin Poised To Reach New All-Time Highs: Expert
Dives Into Tether’s Role As The Key The critical vulnerability,
analysts said, had the potential to cripple the whole network.
What’s concerning is that even considering the severity of the
flaw, the Solana Foundation and developers chose a “quiet” fix,
calling into question Solana’s decentralization level.
Additionally, Solana has been struggling with high transaction
processing failures. According to trading data from Jupiter, a top
DEX on Solana, only about 35% of all transactions posted go
through. A big chunk, or 65% of all transactions, fail. The high
failure rate significantly undermines some of the platform’s key
selling points, mainly its low fees and high scalability. Feature
image from DALLE, chart from TradingView
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