$SOL is now really hanging on the edge of a cliff!
On June 21st, the price completely broke below the $140 support level, and formed a classic head and shoulders bearish pattern. Those who understand technical analysis know that this clearly indicates bears are set to dominate the market.
The short-term downward target is very clear, first aiming for $110, and then it may directly crash down to $93!
The bulls have been trying to rebound these past few days, but the 20-day moving average is like a wall blocking the way, and it is highly likely that bears will firmly suppress it.
If the rebound fails, SOL could directly drop back to $110, or even hit the target of $93 in one go; the bears are really aggressive this time.
However, don’t completely lose hope, there is still a glimmer for a rebound!
If SOL can break above the 20-day moving average and hold, it indicates that the buying at the bottom is quite strong, and the price may have a chance to surge towards the 50-day moving average, but by then it may face a second wave of bearish pressure.
Looking at the 4-hour chart, all the moving averages are trending down, clearly indicating that bears are in control. However, the RSI indicator is nearing the oversold zone, which may provide an opportunity for a short-term rebound.
If it rebounds to $140 and then gets knocked down again, the bears will definitely continue to push it down. Only by standing above the 50-day moving average can it be considered a true reversal signal, after which there is a chance to surge towards $149→$158.
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