The cryptocurrency trader and analyst Benjamin Cowen predicted in a tweet this morning that the price of Solana (SOL) could sweep the lows in the coming few days to set a new price bottom for this bear market. Thereafter, he believes that the altcoin’s price will begin to climb, similar to the price movement seen with Cardano (ADA) in the previous cycle.
Good chance $SOL sweeps the lows, just like $ADA did last cycle. pic.twitter.com/KHJEPdV6qU
— Benjamin Cowen (@intocryptoverse) August 23, 2023
At press time, SOL was changing hands at $20.65 according to CoinMarketCap. This was after the altcoin suffered a 1.76% drop in price over the past 24 hours. Moreover, the negative daily performance led to a deeper decline in SOL’s weekly performance, reaching -12.05%.
Daily chart for SOL/USDT (Source: TradingView)
A symmetrical triangle chart pattern had formed on SOL’s daily chart, which suggested that the Ethereum-killer’s price may experience a breakout soon. If this pattern is validated and SOL’s price breaks out bearishly, then the cryptocurrency’s price may retest the crucial support level at $17.10 throughout the following week.
On the other hand, a bullish breakout could result in SOL’s price reclaiming the $22.10 and $25.80 support levels in the coming week. Thereafter, the altcoin’s price may skyrocket to $34.60 in the next two weeks.
Traders and investors will want to take note of the fact that a significant short-term bearish technical flag was triggered on SOL’s daily chart over the past few days. During this period, the 9-day EMA line broke below the 50-day EMA line.
Furthermore, the 20-day EMA line was attempting to cross below the 50-day EMA line. If these two technical indicators cross within the next 48 hours, then it will signal that SOL’s price has also entered into a medium-term negative trend. Should this technical pattern be validated, SOL’s price may sweep the lows on its chart as predicted by Benjamin Cowen this morning.
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