The technical indicators for Solana (SOL) suggest that the digital asset may experience a significant price correction. Currently, the indicators are suggesting that the correction is expected in the upcoming weeks.
The report suggests that in the upcoming weeks, Solana may experience a bearish reversal, known as a ‘classic bearish reversal’.
This would mean that the trading price of Solana may move into the negative zone in the upcoming weeks. According to the analysts, the change may take place before the arrival of September.
A 35% Price Correction is Expected
A look at the three-day chart for Solana suggests that a rising wedge is being painted by the price of SOL. At present, two trendlines moving in the upward zone are meeting at a particular point.
In addition to the convergence of the trendlines, the trading volume for SOL is also moving in a downward direction. As the trading volume is moving downwards, it suggests that the investors are withdrawing from their investments.
Another indicator of the weakening trading volume can be that the investors are growing exhausted from buying SOL. This may give way to the bears and they may bring the trading price of SOL to the lower zone.
The outcome of the Rising Wedges
When the rising wedges are witnessed, it means that a breakdown may be recorded in the price of the digital asset, and here, it is Solana. If Solana ends up following the breakdown scenario, then its price may start moving in a downward direction.
The graph shows that as of now, the wedge range is out of sight, suggesting that a breakdown is far from completion. If the requirements of the bearish trend are fulfilled, then SOL may start moving in a downward direction.
Downward Movement of Solana
This would cause the trading price of SOL to pull back. In this particular case, the trading price of Solana may start moving in the downward direction and may fall to $45.
As Solana keeps falling below the lower trendline, then the price of Solana may experience a huge dip. This dip can cause the trading price of Solana to fall as low as $30.
If that happens and the trading value of Solana ends up falling to $30 or lower than that, then its price will have experienced a 30% dip.
Shockingly, the data suggests that the trading price of Solana may drop to this level before September.
Upward Expectations for Solana
If the trading price of Solana moves into the higher bullish zone, then its price may rise up to $53.50.
If Solana’s price manages to break above the $53.50 mark, then more investors will start rallying to the cause. This would push the trading price of SOL up to $58.
