Expectations of the Solana price going above $200 have been rampant with the most recent recovery. In some cases, predictions have reached as high as $1,000 for the cryptocurrency, but one crypto analyst is going in the opposite direction. In a recent analysis, Alan Santana has predicted a crash for the SOL price that could eliminate all of its gains from the past week.
Solana Shows Similar Patterns To 2023
In the analysis, crypto analyst Alan Santana points out that the Solana cryptocurrency is showing similarities to a trend that was seen back in 2023. Last year, the trend was with a rise in the trading volume of the altcoin, which was the start of a bullish run. However, this time around, there is more of a bearish run in the volume, which could suggest the beginning of a bearish trend for the digital asset.
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Back in July 2023, Solana saw a notable rise in the buying volume, which was the highest level at the time. As the analyst points out, this strong buying volume began after around 45 days of bullish price action for the altcoin. The result of this was a continuation of bullish rallying, eventually reaching as high as $209 less than one year later.
Applying this trend to the current trend could help to identify where the Solana price could be headed next. This time around, there has been a notable uptick in the selling volume of SOL. It is coming after 140 days of continuous bearish action on the SOL price.
Using the result of the 2023 trend here would tell us that the Solana price could be headed for a further crash. Given that the current selling volume is the highest in over a year, the resulting crash is expected to be quite significant.
How Low Will The SOL Price Go?
With the bearish sell pressure mounting on the Solana price, it has posed a threat to SOL’s triple-digit status. In his chart, Alan Santana points out multiple levels where he sees the SOL price falling to, and both of them are below the $100 mark.
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The first of the two is around $90, which is around a 40% price decline from its current level. Moving love, the second target is placed below $60, meaning an over 50% decline in price. Additionally, a drop to this level would mean a new one year high, since the SOL price hasn’t been below $60 since November 2023.
Featured image created with Dall.E, chart from Tradingview.com
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Scott Matherson
https://www.newsbtc.com/news/solana/bearish-signal-solana-chart/
2024-08-13 15:30:19
