Is Solana Facing a Double Top Pattern Amid Network Efficiency Concerns?
As the cryptocurrency market corrects, Solana’s price trajectory indicates a potential double top pattern formation. Plus, network efficiency concerns raise alarms in the community. Let’s dive deeper into these issues:
Solana Price Rejected Twice from Resistance
During mid-March, Bitcoin’s correction trend impacted Solana’s price movement. The coin struggled to breach the $205 resistance level, facing rejection twice. This suggests strong seller resistance at this price point.
Notably, the daily chart illustrates a double top pattern formation, often signaling market tops before a reversal. With a 15% drop from the recent high, SOL now trades at $173.
Network Efficiency Concerns
Kyledoops highlighted critical issues with Solana’s network, including high network congestion and a 76.8% transaction failure rate. These challenges jeopardize the network’s ability to handle transactions effectively.
Solana users demand better: network congestion and transaction failures are unbearable. $SOL must step up to meet the demands of a bullish market with its current 76.8% transaction failure rate. pic.twitter.com/F0vVpUtyMj
— Kyledoops (@kyledoops) April 5, 2024
This situation demands immediate action from Solana developers to enhance network scalability and reliability.
Monitoring Key Levels Amid the Market Correction
It’s crucial to keep an eye on key levels as Solana navigates through a bearish pattern and potential price declines:
- Neckline Support at $163: A break below this level could intensify selling pressure, pushing Solana towards $120.
- Reversal Potential: A bounce off $163 may weaken the bearish scenario, leading to sideways movement.
Technical Indicators to Consider
- Relative Strength Index: Watch for bearish divergence in the double top pattern, indicating seller dominance.
- Exponential Moving Average (EMA): The 50-day EMA has historically supported Solana’s price during market corrections.
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