Solana price eyes a 20% descent amid a potential bear pennant

Solana price bears the brunt of a DDOS attack over the past few days.
SOL price is teasing a bear pennant breakout on the four-hour chart.
SOL bears target $135 on a downside confirmation as RSI stays bearish.

Solana price tumbled to fresh weekly lows of $161.04 before rebounding to close Saturday at $172.09. SOL bears have regained control below $170 on Sunday, knocking down the rates almost 2% lower on a daily basis.

The so-called Ethereum killer was hit hard over the last past three trading sessions due to a high-profile distributed denial-of-service (DDoS) attack. The renewed downside in SOL price is in sync with a fresh selling wave that has gripped the crypto market.

SOL bulls have failed to pay any heed to the news that Opera browser’s wallet will add support for Solana early next year, a timeline that could place the browser developer on track to beat Brave.

Solana price gears up for a big technical breakdown

Solana’s latest consolidation that follows the previous sell-off carves out a bear pennant formation on the four-hour chart, keeping the sellers cheerful.

If SOL bears manage to find a strong foothold below the rising trendline support at $168 on a four-hourly candlestick closing basis, then it would validate the downside breakout from the bear pennant.

SOL price will eye deeper losses towards the pattern target measured at $135.

The bears will, however, challenge the bullish commitments at the December 11 lows of $161 and the $150 psychological level beforehand.

The 14-day Relative Strength Index (RSI) looks south below the 50.00 level, allowing room for more declines.

SOL/USD: Four-hour chart

Alternatively, a sustained break above the falling trendline resistance at $173 will invalidate the bearish continuation pattern.

The bearish 21-Simple Moving Average (SMA) at $177 will then challenge the road to recovery, as SOL bulls keep their sights on the $180 mark.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.