Solana (SOL) has recently caught the attention of the crypto community as it shows signs of strong bearish momentum, prompting questions about whether the next significant price target could be as low as $90. While Solana has been a favorite for its bullish potential, an analyst has warned that the path forward might be more volatile than anticipated.
Analyst Highlights Bearish Signal
Crypto trading expert Alan Santana recently highlighted a concerning bearish signal for Solana, pointing to a potential deeper decline. According to Santana, Solana's price and volume patterns in August 2024 are eerily similar to those observed in July 2023, but with a twist.
In July 2023, Solana experienced a bullish volume spike following over 45 days of steady price increases. This surge in volume indicated strong buying interest, leading to a significant upward price movement. However, in August 2024, after enduring 140 days of bearish price action, Solana has shown a strong bearish volume spike, suggesting that the current downtrend may continue. Santana warns that if this bearish momentum persists, Solana could potentially drop to the $90 level—a critical support zone based on historical trading data.
Mixed Sentiments: A Possible Rally?
Despite the bearish outlook, not all analysts agree on Solana's fate. In an August 11 post on X (formerly Twitter), an analyst known as Crypto Patel suggested that Solana might still have a chance to rally. Patel pointed to strong bullish momentum, indicating the potential for Solana to reach a new all-time high of $500.
Patel's analysis emphasizes Solana's historical performance during past bull runs, where the cryptocurrency experienced significant price increases from its support levels. He noted a robust support zone around $80, which has historically acted as a launchpad for upward price movements.
Current Price Action and Key Levels to Watch
As of the latest data, Solana is trading at $154, down slightly by 0.3% in the last 24 hours. Despite this minor correction, Solana has gained over 7% on the weekly chart, signaling some resilience.
Investors should closely monitor Solana's key support levels, particularly the $150 mark. Falling below this level could indicate further downside risks and potentially lead to a decline toward the $90 support zone.
Conclusion
Solana's future remains uncertain as it navigates between bearish signals and potential bullish breakouts. The coming days will be crucial in determining whether Solana can stabilize and resume its upward trajectory or if a further drop to $90 is inevitable. Investors are advised to stay informed and cautious, considering the volatile nature of the cryptocurrency market.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are speculative, and your capital is at risk.