SOL Head and Shoulders Pattern Alert: Potential for Further Downside
CryptoNewsTerminal Staff13 Aug, 2024
SOL Head and Shoulders Pattern Alert: Potential for Further Downside
SOL Head and Shoulders Pattern Warns of Potential Losses Cryptocurrency analyst Ali Martinez has identified a concerning technical formation in the SOL/USD daily chart—a head and shoulders pattern. This pattern often indicates a potential for further downtrend. According to Martinez, if SOL breaks below the $141 support level, it could plunge to $122. SOL is currently trading slightly below $145, indicating the potential for a downward move. The head and shoulders pattern is formed when a chart creates three peaks, with the middle peak (the "head") being the highest. The two smaller peaks on either side (the "shoulders") should be roughly equal in height. A neckline is drawn connecting the lows of the two troughs that form before and after the head. If the price falls below the neckline, it signals a potential breakdown of the pattern and could lead to further losses. Traders closely monitor head and shoulders patterns, as they often provide a bearish signal for the coming weeks and months. Investors should be cautious and consider adjusting their trading strategies accordingly.
