SOL token rate to collapse by 40% in June. Analyst’s prediction

The price of the asset may be affected by network outages and decreasing in smart contract reserves

10.06.2022 - 14:50

318

2 min

What’s new? Cointelegraph analyst Yashu Gola said that the price of the native token of the Solana (SOL) blockchain may collapse by 40% this month. According to him, periodic network outages and decreasing in smart contract reserves will affect the decline of the rate. The analyst also noted a possible break of the support line in the near future as the rate of the asset is approaching the top of the “descending triangle” pattern currently formed on the chart.

Cointelegraph’s material

Analyst’s prediction. Yashu Gola noted that the SOL price consolidated inside a range defined by the resistance level of a falling trendline and horizontal support level. This points to a “descending triangle” pattern. According to the analyst, as the SOL is trending downwards, having fallen about 85% from its November 2021 peak of $267, there is a high probability of a breakout below the triangle range.

Typically, a breakdown move followed by the formation of a descending triangle could continue until the price of the asset falls as much as the maximum height of the triangle. Thus, the projected rate of SOL in a bear market environment is $22,5 this month, which is more than 40% lower than the price on June 10 — at 14:30 UTC, the asset is trading at $38,36.

Yashu Gola also pointed out that descending triangles that form during downtrends but still result in price reversals, usually indicate the bottom of the asset’s bearish cycle. So, if the SOL holds above the support line, the SOL/USD pair could break the falling trendline resistance, and rise to its maximum level of around $65, which is about 72% higher than the current price.

On June 1, Solana developers halted the network operation for 4 hours. Validators began restarting the network only after disabling the so-called “durable nonce transactions” that caused the validation failure.

Author: