Is Solana sol facing a catastrophic breakout from an inside-bar pattern?

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It is an indecision moment as Solana is trading at the oversold level of $13. The cryptocurrency has formed multiple pin bars at the level, indicating indecision in the market. A possible breakout to the downside could claim the price of SOL a point higher.

Coinmarketcap data shows that SOL has lost over 25% in a week. loss is highest in cryptocurrency in the top 100 bracket. Concerns that the Solana ecosystem is a major risk to the collapsed FTX and Alameda are fueling a bear market. Alameda is believed to have 50.5 million SOL worth $708 million. Amidst the risks, Solana founder Anatoly Yakovenko has said the investment is unaffordable.

SOL remains at the mercy of the bears, who are becoming increasingly active at the $13 price level. Here’s the value approach:

SOL under pressure at $13 even as price hits oversold levels

Technically, SOL is forming a support area at $13. However, a possible bullish reversal looks unlikely as the coin trades with weak momentum. The formation of multiple inside bars at the key level suggests matching efforts by buyers and sellers.

SOL/USD chart by TradingView

Turning to the RSI, it shows that SOL is oversold. The recovery attempt has been muted with the RSI reading slipping to 29. The MACD indicator is underlining a weak and deteriorating bullish momentum.

How is SOL?

The inside-bar pattern can break out on either side. An upside breakout would confirm a bullish reversal for SOL. However, if there is a breakout to the downside, there could be a strong selloff for SOL. In such a situation, the price of SOL can be $ 10 or even less.

With weak sentiment, the chances of a bearish breakout are high. investors should be cautious buy sol At this stage.

where to buy sol

eToro

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binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited for more experienced investors and it offers a large number of cryptocurrencies to choose from, over 600. Binance is also known for its low trading fees and multiple trading options that its users can benefit from, such as; Peer-to-Peer Trading, Margin Trading and Spot Trading.

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