Analysts Warn Investors as Solana Faces Potential Downturn.
The cryptocurrency Solana has attracted attention with its strong upward trend over the past year. However, recent market dynamics indicate that this rising momentum may be under threat. Despite its struggle to surpass the resistance level at $138, Solana has yet to breach this critical threshold.
Emerging Threats to Solana.
One of the most concerning technical developments for Solana is the potential formation of a "death cross." This formation, which signals a downturn, occurs when the 50-day exponential moving average (EMA) falls below the 200-day EMA. For many traders and analysts, a death cross is a warning that long-term upward trends could reverse and significant price drops may follow.
The death cross for Solana could signify the possible end of the impressive bull run that began in October 2023.
Technical Indicators and Support Levels.
On the technical side, the Moving Average Convergence Divergence (MACD) indicator offers a glimmer of hope. Although the overall trend is downward, the MACD suggests that short-term selling momentum may weaken. This could lead to a temporary bounce, particularly if Solana can maintain the $124 support level.
If Solana manages to hold this level, it could halt downward pressure and provide a recovery area. However, falling below $124 could trigger significant selling pressure, pushing the cryptocurrency toward the next support point at $120. This level has been significant since March 2024, and breaking it could heighten the risk of a more considerable downward trend for Solana.
Cryptocurrency analyst Alan Santana has recently issued warnings regarding Solana's future. Santana noted that while Solana experienced strong growth in 2023, its current trends for 2024 appear less promising. He points out that recent increases in trading volume show signs of decline, leading to a decrease in Solana's price. He predicts that the price could drop by up to 42%, possibly falling to $80.
