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.
IDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/DomCritelli/Yana Lesnik