A price analysis by analyst Matthew Dixon, CEO of Evai, has highlighted Solana’s (SOL) market action. Dixon shared his observations on X pointing out a possible drop in Solana’s price to $102, a 25% drop from present levels. 

Technical indicators—including Fibonacci retracement levels and declining market conditions—form basis for this projection.

Fibonacci Levels Indicate Potential Drop

Dixon’s analysis uses Fibonacci retracement levels to outline key support and resistance areas for Solana. Currently, the price is hovering around the 0.618 Fibonacci retracement zone, which often acts as a key support level. 

A sensible target for #SOL would be $SOL 102 but nothing is ever certain.IF price continues to fall in line with this expectation then #DCA buying of dips may prove a good strategy long term. pic.twitter.com/PefxzwuGOS

— Matthew Dixon – CEO Evai (@mdtrade) October 3, 2024

However, if SOL fails to hold this support, the price could fall further, with $102 being the next target. This prediction aligns with Dixon’s projection, supported by a downward-pointing arrow on his chart.

If the price continues its downward trend, Dixon believes that a Dollar-Cost Averaging (DCA) strategy—buying small amounts of SOL during each dip—may prove to be a smart long-term investment strategy.

RSI Suggests Weakening Buying Pressure

The Relative Strength Index, a commonly used momentum indicator, also supports Dixon’s bearish outlook. The RSI is approaching the lower end of its range, indicating reduced buying pressure. This signals a possibility of further price declines. 

However, should the RSI rebound from these levels, a short-term price recovery could occur, although within a generally bearish trend. If the bearish momentum holds, it could push the price closer to Dixon’s $102 target. 

Conversely, a failure to break below the current support level might provide a temporary boost to the price.

Celebrate Dogecoin and Make Big Gains with Doge2014!

Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!

Show more +Show less –

Read also: Best Altcoins to Buy on The Dip – Which Cryptos Will Skyrocket in October?

Dixon’s Advice: Long-Term DCA Strategy

Matthew Dixon’s analysis points to a cautious but optimistic approach for long-term investors. He suggests adopting a DCA strategy to capitalize on Solana’s dips if the bearish trend persists. This strategy could offer a more stable entry point for investors looking to accumulate SOL over time.

As of data from CoinGecko at publication, Solana (SOL)  trades at $136.12, representing a 5.52% decline in the past day and a 10.79% drop over the last week. Dixon’s analysis and advice offer insights for investors navigating the current volatility in Solana’s market.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.Get all our future calls by joining our FREE Telegram group.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more Visit eToro Now Active user community and social features like news feeds, chats for specific coins available for trading. Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs. Copy trading: allows users to copy the trades of leading traders, for free. User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.

The post Solana (SOL) Price Could Dip 25%, Expert Advises ‘Buying Of Dips’ If Bearish Momentum Persists appeared first on CaptainAltcoin.