SOL price trending toward yearly low as Solana TVL drops $870M in three days
Solana (SOL) tumbled on June 16 amid a broader retreat across the top cryptocurrencies, led by the Federal Reserve's 0.75% interest rate hike a day before.
Notably, SOL/USD plunged nearly 17% to $30 a token, wiping almost all the gains from the day before. The SOL price volatility liquidated almost $10 million worth of contracts in the past 24 hours across multiple crypto exchanges, data from Coinglass shows.
The latest declines come as an extension to SOL's broader correction, where it dropped by more than 90% after peaking out near $267 in November 2021. SOL also fell to its lowest level since July 2021 near $25.
In addition, a higher interest rate environment and the collapse of high-profile crypto projects like Terra have strengthened SOL's downside prospects.
Solana's pullback move on June 16 began after testing a horizontal trendline resistance near $34 that constitutes what appears to be an "ascending triangle" pattern.
Ascending triangles are continuation patterns, i.e., they tend to send the price in the direction of their previous trend. As a rule, breaking out of a triangle pattern in a bearish market, for example, sends the price down by as much as the structure's maximum height.
If SOL breaks below its ascending triangle's lower trendline then the bearish profit target will come below $22.50, as shown in the chart below.
Solana's downside target is about 25% below today's price and could be achieved by June. Nonetheless, if SOL bounces after testing the triangle's lower trendline as support, it would eye the $34-36 range as its interim upside target.
Over 27 million Solana tokens have exited its smart contract ecosystem since June 13.
The total value locked (TVL) inside Solana smart contracts dropped to 74.65
Read more on cointelegraph.com
