Solana At A Crux: Will SOL Crash To $120 Accelerated By These Factors?

by

As a seasoned crypto investor with a knack for spotting trends, I have to admit that Solana has been a rollercoaster ride this year. The coin’s performance is impressive, no doubt, but the current sideways movement has me on edge. I’ve learned the hard way not to underestimate the power of a head and short formation – it can be as unnerving as a clown at a slumber party.

Over the last year, Solana continues to be among the leading cryptocurrencies in terms of performance. Despite experiencing a dip from its projected 2024 peaks, the value of the coin is still significantly greater than it was at its lowest point in 2022.

Enthusiasm among traders is running high as they anticipate future developments, with several believing that the coin’s value could surpass $260 effortlessly and reach new peak levels within the upcoming months.

Similar to Bitcoin, Ethereum, and other prominent cryptocurrencies such as Cardano, Solana (SOL) is encountering resilient sellers. On a daily scale, SOL appears to be moving horizontally, potentially indicating an accumulation phase given the current overall upward trend. Nevertheless, some traders anticipate potential challenges for SOL in the upcoming trading sessions when looking at lower time frames.

SOL Holders To Prepare For More Pain?

Observing the hourly chart, we notice X’s candlestick has developed a small body and a long wick, often indicating a weak trend. Interestingly, this pattern emerged during the period when the digital currency consolidated within the bearish range from July 28 to August 5.

Looking at the day-to-day graph, SOL encounters robust resistance near the peak of August 8, which was $162. On the flip side, it finds support around $142. The back-and-forth movement within this range has created a bear flag, suggesting further potential for selling. This pattern becomes even more significant if sellers from late July and early August continue their pressure.

On the one-hour graph, potential resistance can be found near $150, which represents the peak of the candlehead. Yet, the top of the shoulder lies around $146. The bottom of this formation sits at $142, aligning with a crucial support level in the daily chart.

In simple terms, analyzing the given candlestick pattern implies that traders might experience further losses unless the price of Solana significantly increases. A drop below $142 on the daily chart could initiate a strong selling wave, potentially pushing the price down to the June and July lows around $120.

Solana Challenges: Centralization Claims, High Transaction Processing Failure Rate

The positive trend, considering factors beyond just candlestick patterns, seems to be losing steam. Last week, a significant security vulnerability emerged and was promptly addressed.

As a seasoned cybersecurity professional with over two decades of experience, I find it deeply concerning when a critical vulnerability is discovered in a widely-used network like Solana, one that has the potential to cripple the entire system. The fact that the severity of this flaw was not met with an immediate and loud response from the Solana Foundation and developers raises serious questions about their commitment to transparency and decentralization.

Furthermore, it’s worth noting that Solana has been experiencing a significant number of transaction processing issues, as indicated by data from Jupiter, a leading decentralized exchange (DEX) on the platform. Approximately 65% of all posted transactions fail to be processed.

Approximately two out of every three transactions on this platform end unsuccessfully, which seriously calls into question several of its primary advantages, such as affordably low fees and impressive scalability capabilities.

Read More

2024-08-15 10:36