Popular crypto analyst Justin Bennett thinks Ethereum (ETH) competitor Solana (SOL) could be in for some rough days ahead.
In a new video update, Bennett says that Solana’s chart flipped bearish and its positive price action earlier in August appears to be a “confirmed fakeout,” or a bull trap.
“A fakeout to one side of a pattern like this typically produces an extended move in the opposite direction. So for Solana, that would mean a move lower as long as the market holds above that $45 area as new resistance.”
Solana is trading at $40.86 at time of writing. The ninth-ranked crypto asset by market cap is down more than 6% in the past 24 hours.
Bennett says the $40 level is a critical area for the Ethereum (ETH) competitor.
“Now, this [around $40] is going to be a big support area for Solana to where if we were to see a daily close below this, then it would open up lower levels like some of these lows down here around $37.
However, I do think that a break of that magnitude would probably send the market down here toward about $32 at a minimum, if not all the way back here to retest the $26 low.”
A move to Bennett’s targets suggests a downside risk of between 21.68% and 36.37% for Solana from its current price.
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