According to analysts, Solana (SOL) will face multiple bearish scenarios if it breaks below its 50-week moving average. The SOL chart faces a 35 percent risk of collapsing in the coming days as it gets closer to drawing the Megafon pattern.
Megafon pattern
As we have previously reported as Kriptokoin.com, the megafon pattern consists of at least two highs and two lows during a period of high market volatility. Generally, these patterns consist of 5 different oscillations, with the last one typically serving as a breakout signal. Solana has been charting a similar pattern since early 2022 and is pulling back after testing the megaphone’s upper trendline near $140 as resistance. As a result of the pattern, Solana could drop 35 percent to test the megaphone’s lower trendline as support near $65.
Solana weekly price chart with ‘Megaphone’ breakout scenario If this scenario happens, Solana may collapse further after creating the fifth swing in the megaphone structure. While finding a perfect downside target in the event of a breakout is difficult, analysts often choose the distance between two trendlines by measuring the point from the breakout of the low, and take profits when the price reaches 50-60 percent of that distance. The downtrend risks bringing the price of SOL down to around $40 in the coming weeks.
Rising wedge on Solana chart
In another scenario, SOL’s megaphone formation may fail to reach its breakout target as its price remains above support levels. These levels include the 50-week exponential moving average of the SOL, an upward sloping trendline that serves as accumulation zones for traders. As a result, an early pullback from the 50-week EMA could invalidate the megaphone scenario.
Solana weekly price chart with the ascending wedge scenario Suppose the price breaks below the 50-week EMA to look for a bounce from the ascending trendline support. In this case, it can confirm the existence of the ascending wedge formation on the chart with the upper trendline of the megaphone pattern. The bearish target of the ascending wedge appears close to $60, after measuring the maximum distance between the upper and lower trendline (around $40) and subtracting it from the potential breakout near $100. Meanwhile, the bearish flag bearish target is near $30, after calculating the height of the previous uptrend (around $60) and subtracting it from the potential breakout near $90.
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