Solana price could crash 21% if this accumulation pattern breaks

Solana price (SOL) has been trading with a bullish bias since March 10 as investors took advantage of the dip to buy SOL at a discount. The token’s price action is defined by higher highs and higher lows, which climaxed as new hope entered the market after days of crises involving Silvergate Capital, Signature, Silicon Valley Bank (SVB), and Circle’s USDC stablecoin.

Solana price rally loses steam

Solana price rally is losing steam as SOL battles the immediate resistance at $20.33, in a fight that has lasted for three consecutive days. With an intra-day high of $20.68, the token was facing rejection from the 50-day Exponential Moving Average (EMA) at $21.08. Notably, this roadblock has stunted SOL since March 2.

As buyer momentum wears off, Solana price could shrink below the ascending trendline, exposing SOL to a cliff. As a result, the altcoin could shed most of the gains made during the weekend, starting with a retracement to the $19.18 support level before nosediving further.

As excitement about the US regulators’ intervention in the Signature and SVB bank crises continues to wear out, the crypto market is bound to experience a trend reversal from the brief uptrend seen across the market, starting with Bitcoin (BTC). Likewise, Solana price could head lower to the $17.36 support level or, in the worst-case scenario, tag the $15.59 support level where the latest bull run started.

Such a move would constitute a 21.80% drop from current levels.

SOL/USDT 12-hour chart

On the upside, if buyers increase their presence in the market and manage their selling appetite, Solana price could head for more gains while maintaining above the trendline. In this respect, a decisive daily candlestick close above the 50-day EMA at $21.08 would invalidate the bearish narrative.

If buyer ambition remains intact above the 50-day EMA, Solana price could flip this barrier into a support level and use it to target the 100-day EMA at $21.26, or in highly ambitious cases, tag the $24.59 resistance level last visited on February 22. Such a move would denote a 29.26% increase from the current price.

Considering the upward trajectory of the Relative Strength Index (RSI), and its price strength at 52, there is still probably more ground to cover to the upside. Nevertheless, given that there are not enough significant positive catalysts in the market at the moment, a rally north could ultimately be extremely difficult for bulls to muster.