Bearish Flag Paints a Dire Picture

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The SOL/USDT dai­ly chart price pic­ture could make way for bear­ish Solana price pre­dic­tions to flood the mar­ket. This is because the recov­ery move appears to have stalled at the recent demand zone bor­dered by the 46.94 price mark and the 48.79 price barrier. 

The dou­ble top has occurred with­in the con­text of the bear­ish flag con­sol­i­da­tion, with the top ini­ti­at­ing a down­ward march that could cul­mi­nate in the pattern’s break­down. Despite the 0.5% upside seen in the SOL/USDT pair, the bull­ish momen­tum seen last week appears to have waned. This could leave the pair vul­ner­a­ble in the days ahead.

The Solana price pre­dic­tions are turn­ing neg­a­tive after a Q1 report by Mes­sari point­ed out the decline in Solana’s trans­ac­tion vol­umes due to ris­ing net­work secu­ri­ty con­cerns. Solana’s 2022 per­for­mance appears to have paled sig­nif­i­cant­ly com­pared to 2021’s mas­sive growth.

Trans­ac­tion vol­umes are down 17%, and rev­enue has almost halved, despite an uptick in the active user base. The num­ber of active devel­op­ers has also declined con­sid­er­ably, near­ly half the num­ber at the time of Solana’s Novem­ber 2021 peak. The SOL/USDT pair is up 0.24% on the day, but this has in no way erased Sunday’s 3.4% loss.

Solana Price Prediction

The emerg­ing bear­ish flag on the dai­ly chart points to a fur­ther decline in the SOL/USDT pair, tar­get­ing the com­ple­tion of the mea­sured move at 12.18 (28 Feb­ru­ary and 25 March 2022 lows). To attain this price mark, the bears must break down the sup­port at 38.13 and take out sequen­tial sup­port lev­els at 30.02 (psy­cho­log­i­cal sup­port and 19 April low) and 20.99 (18 April and 21 June 2022 lows).

This move would also sup­port the expect­ed res­o­lu­tion of the dou­ble top 19 July and 30 July 2022. On the flip side, a break of the sup­ply zone capped by the 48.79 resis­tance (25 April and 12 May highs) opens the way toward 56.38, where the 19 May 2021 and 13 May 2022 highs are found.

If the price action extends above this lev­el, the 60.00 (18 August 2021 psy­cho­log­i­cal low) and 68.49 resis­tance lev­els (16 August 2021 and 12 May 2022 highs) are the next tar­gets for the bulls. 79.37 only becomes an addi­tion­al har­vest point if the 68.49 bar­ri­er gives way.

SOL/USDT: Daily Chart

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