SOL projects a bearish outlook on the daily chart after forming a bearish engulfing pattern, and if the trend continues, the price of SOL could fall to $120.
On the 1-day chart, SOL shows a head and shoulders pattern, indicating a bearish reversal. A break below its neckline level of $140, confirmed by a sudden increase in volume, could lead to a bearish continuation.
The bearish target of the head and shoulders pattern is around $126, supported by the immediate liquidity zone. However, the daily demand zone is delineated by the order block between $95 and $120, which could be tested in the coming weeks.
The bearish pattern of SOL could be invalidated if the price closes above the resistance level of $157. However, Solana has shown a strong correlation with Bitcoin during the quarter. Since BTC could retest support near the $100,000 level, increased selling pressure could lead to a greater correction of SOL.
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