- Breakout at neckline needed to confirm bullish inverse H&S setup
- Failure to breach resistance risks invalidating pattern
- SOL’s next moves at critical juncture will shape trajectory
SOL Chart Shows Potential Bullish Reversal Patterns
Solana appears to be forming an inverse head and shoulders pattern on its chart, which is typically seen as a bullish signal. However, for this setup to materialize and spur gains, SOL must break through resistance at the neckline.
The inverse head and shoulders represents a series of higher lows, with the middle dip lower than the two surrounding ones. A break above the neckline confirms the pattern and suggests further upside may unfold.
On the other hand, a rejection at this level risks invalidating the bullish formation and extending Solana’s downtrend. The move at the neckline will be pivotal in determining SOL’s trajectory.
Adding to the bullish cues is an impending golden cross of SOL’s 50-day and 200-day moving averages. But the neckline remains the crucial barrier to flip the outlook positive.
Shiba Inu Remains Shackled By Long-Term Downtrend
Meme coin Shiba Inu continues facing significant selling pressure within an entrenched downtrend. Its daily chart highlights an aggressive declining trendline that has overridden any brief upside moves.
After exploding in popularity in 2021 and attracting immense retail interest, SHIB has been unable to overcome the persistent forces weighing on its price. The harsh long-term bearish channel remains intact.
Shiba Inu and its meme coin peers rode a massive hype cycle to dizzying gains last year. But the downside risks of pure speculation came back to bite SHIB as its trend reversed. It remains ensnared by the long-term technical downtrend.
For SOL, its pending inverse head and shoulders pattern provides hope. But a rejection of the neckline could spell doom. At a critical juncture, the next moves for Solana will be extremely important in setting its trajectory.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.