Solana (SOL) Price Gearing up For 50% Crash In June If This Scenario Plays Out

The post Solana (SOL) Price Gearing up For 50% Crash In June If This Scenario Plays Out appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

The price of solana appears to be on the slide, but there may be chances of profit taking. As the bulls have failed in their attempts to regain the price of Solana, the price continues to fall sharply. Today, the price of SOL is $40, and it is still trading within a downward parallel channel.

SOL has been drifting lower, down around 85% from its peak of $267 in November 2021, and the chances of it breaching below the triangle range are increasing.

A breakdown move followed by the development of a falling triangle, according to technical analysis, could last until the price has fallen as far as the triangle’s maximum height. SOL’s negative price estimate for June is $22.50, down nearly 40% from the price on June 10.

According to a study undertaken by Samurai Trading Academy, not all descending triangles lead to breakdowns. Based on the pattern’s history, a descending triangle setup has a seven out of ten chance of hitting its profit target. As a result, SOL has about a 30% chance of escaping a collapse and rebounding.

Assume SOL maintains a firm grip on the triangle’s horizontal trendline support. The SOL/USD pair may then break over the structure’s falling trendline resistance and ascend to its maximum height, putting its upside goal around $65, up nearly 72% from its June 10 price.

Solana’s fundamentals are mixed due its poor performance as a blockchain network in recent months. According to data from Defi Llama, the total value locked (TVL) inside Solana’s smart contracts has dropped to $3.69 billion, down 75% from its record high of $14.83 billion in December 2021.

On the flip side…

The most recent development is the Solana $100 million fund, which was made available to web3 developers in South Korea. This year, the fund is intended to significantly develop the Solana DeFi and gaming ecosystems.

The decision is also expected to entice developers who wish to move their projects from Terra to Solana, thereby increasing demand for SOL.

As a result, the number of Solana projects and items will rapidly expand in the coming months, as will the price of the Solana currency. The NFT market in Solana is also doing nicely. With all of these developments, Solana might reach $50 if the bulls regain control of the market.

According to a study written by James Trautman, a researcher in the U.S.-based crypto analytics business Messari, Solana had a steady increase in network usage, developer activity, network infrastructure, and overall ecosystem in the first quarter of 2022.