Ominous Solana technicals hint at SOL price crashing 35% by September
Solana (SOL) risks a significant price correction in the coming weeks owing to a classic bearish reversal setup.
On the three-day chart, SOL's price has been painting a rising wedge, confirmed by two ascending, converging trendlines and falling trading volumes in parallel.
Rising wedges typically result in breakdown, resolving after the asset's price break below the lower trendline. If the price follows the breakdown scenario, it could fall by as much as the maximum distance between the wedge's upper and lower trendline.
SOL is far from a breakdown but trades within a falling wedge range, as shown in the chart below. The token eyes an immediate pullback from the wedge's upper trendline with its interim downside target sitting at the lower trendline around $45.
It will risk falling toward $30 if the price breaks below the lower trendline while accompanying a rise in trading volumes. In other words, a 35% price drop by September.
Conversely, a bounce from the lower trendline could have SOL eye an immediate rebound toward the wedge's apex point at around $53.50.
A decisive breakout above the upper trendline would invalidate the bearish reversal setup, if SOL rises to the 50-3D exponential moving average (50-3D EMA; the red wave) near $58.
$SOL daily close above $45Entered 25% size (bear market size) will stop with close under $42 otherwise targeting $56-60 https://t.co/US0ucViHN6 pic.twitter.com/xo7zfDGMrZ
Solana's rising wedge breakdown setup appears as it battles a flurry of negative events, including repeated network outages, centralization concerns and a widespread exploit that targeted Solana wallets.
Nevertheless, SOL rallied nearly 40% in August, mirroring other crypto assets that gained around 11% month-to-date on
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