Solana's weekend bounce risks turning into a bull trap — Can SOL price fall to $60 next?

A rebound determination witnessed successful the Solana (SOL) marketplace this play exhausted midway arsenic its terms dropped beneath the $90 level from a precocious of $96 connected Feb. 21. In doing so, SOL terms technicals are present risking a classical bearish reversal setup.

Solana terms risks dropping to $60

Dubbed head-and-shoulders (H&S), the method signifier emerges erstwhile the terms forms 3 peaks successful a enactment atop a communal enactment level (called a neckline). As it typically turns out, the pattern's mediate peak, called a "head," comes longer than the different 2 peaks, called theleft and close shoulders, which travel to beryllium of akin heights. 

The H&S signifier tends to nonstop the prices lower—at magnitude adjacent to the maximum region betwixt the caput and the neckline—once they decisively interruption beneath its neckline. As a result, Solana, which has been forming a akin method operation lately, risks sliding toward $60, oregon astir 30%.

SOL/USD regular terms illustration featuring head-and-shoulders setup. Source: TradingView 

Interestingly, the H&S downside target, adjacent $60, was besides instrumental arsenic enactment successful August 2021, close earlier Solana's terms rally to its grounds precocious supra $250.

Bear emblem increases downside risks

The risks of Solana undergoing a play of different large selloff person been besides expanding owed to a method signifier called a "bear flag."

Related: Bottom ahead? Solana paints its archetypal 'death cross' arsenic SOL losses 50% successful January

Notably, SOL's terms has been breaking retired of the bearish continuation setup. In doing so, it present risks falling by arsenic overmuch arsenic the magnitude of its erstwhile downtrend, called "flagpole," erstwhile measured from the constituent of breakout, arsenic shown successful the illustration below.

SOL/USD regular terms illustration featuring carnivore emblem setup. Source: TradingView

As a result, SOL's carnivore emblem breakout risks sending its terms to $60 oregon lower, similar the H&S pattern.

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