$SOL
🚨 Short-term Analysis Showed Risky Waters Ahead for the Solana Price 🚨
While longer timeframes hint at a further bullish continuation, shorter timeframes hint at some risks in the near term. The 4-hour chart showed that Solana just recently formed a rising wedge. A breakdown usually follows the pattern.
Furthermore, a head and shoulders pattern has been compounded, with the right shoulder forming close to current price levels. In case these bearish setups are proven true, we could witness a short-term decline towards the $133 to $131 area.
The Chaikin Money Flow (CMF) indicator stood at 0.03 at press time. It indicated the accumulation and distribution of an asset. This slightly positive reading suggested a little infusion of capital, but it was not the kind of buying that usually leads to an imminent breakout.
A sharp increase in CMF usually follows a breakout after a cup and handle formation. It may be important for Solana price in upcoming sessions.
The only way a successful breakout above the $220 neckline could occur in the longer term is by activating the measured move target based on the depth of the cup. Such a projection suggests that Solana could also see downswings to the $400 to $600 zone in the coming months.