Well-known crypto analyst Ali Martinez recently highlighted a worrying pattern on the price chart of the fourth biggest altcoin on the market, Solana (SOL).
Thus, according to Martinez, the hourly chart indicates that Solana may be forming a head and shoulders pattern, which could signal a potential correction in the price downward to $122. This would represent a 17% decline from current levels.
A head and shoulders pattern is basically a shape that looks like two bumps with a bigger bump in the middle. When the price dips below a line connecting the bottoms of the shoulders, which is called the neckline, it is often a sign that the price is going to go down. It is like a warning flag for traders.
#Solana could be forming a head and shoulders pattern in the hourly chart, which suggests that a drop below $141 might trigger a correction that sends $SOL to $122! pic.twitter.com/o39Vn0FY8z
— Ali (@ali_charts) August 12, 2024
Protect neck
As illustrated in the attached chart, from Martinez's outlook, the pattern emerged in August, beginning in the latter half of the first week. Following the SOL price increase to $163 due to the pump and the subsequent decline, the right shoulder began to form. This is when we reached a pivotal point.
If Martinez's Solana price prediction is accurate, the current period represents a pivotal moment for one of the largest cryptocurrencies. The potential impact on SOL's price chart is significant, as the Solana ecosystem is home to numerous other cryptocurrencies - many with multi-billion market caps and thousands of small caps.
