- John Bollinger highlights a trading pattern for Solana; SOL must stay above the lower Bollinger Band for confirmation.
- Solana is currently among the lower-performing top ten cryptocurrencies, trading at $138.69 after a 2.5% decrease.
John Bollinger, a seasoned trader, recently identified a trading pattern for Solana (SOL) on his social media. He noted that Solana’s price must stay above the lower Bollinger Band and initiate an upward movement to confirm the pattern’s validity.
“It needs to hold above the lower Bollinger Band and turn up for confirmation. …Then you’ll have a nice risk/reward trade. Stop under the second swing low,” Bollinger said in his social media post.
Bollinger recommended setting a stop loss below the second swing low to mitigate risk, describing the setup as a favorable risk/reward opportunity.
I don't know much about Solana, but that's a nice pattern. It needs to hold above the lower Bollinger Band and turn up for confirmation. (%b divergence) Then you'll have a nice risk/reward trade. Stop under the second swing low.
— John Bollinger (@bbands) August 16, 2024
Currently, Solana ranks as one of the lower-performing cryptocurrencies in the top ten, with a recent price of $138.69, reflecting a 2.5% decrease over the past 24 hours, according to ETHNews.
Despite its recent performance, Bollinger, along with another cryptocurrency analyst known as Mister Crypto, remains positive about Solana’s potential for recovery.
When Solana breaks above this $SOL / $ETH resistance…
I will convert almost all my Ethereum into Solana. pic.twitter.com/nQj2UEaUig
— Mister Crypto (@misterrcrypto) August 16, 2024
Earlier this year, Solana experienced a surge in popularity due to an increase in the creation of meme coins on its network. The platform Pump.fun, which allows for the creation of Solana-based meme coins, reported that the number of tokens had surpassed 1.7 million. This development initially led to an increase in network demand and trading volume for Solana.
However, the enthusiasm for meme coins has since declined, resulting in decreased demand and trading activity for Solana. The challenge now lies in finding a new catalyst that could stimulate growth for Solana.
Recent developments in the broader cryptocurrency market include filings for Bitcoin ETFs by VanEck and 21Shares, though these do not directly impact Solana. Additionally, BlackRock has indicated that it will not propose a Solana ETF.
The future of Solana’s market performance will depend on its ability to adapt to changing market conditions and find new growth drivers beyond the transient meme coin trend.
