Solana (SOL) Might Drop to $90, per This Market Prediction.
Solana (SOL), the fifth largest cryptocurrency by market capitalization, may be on the verge of a significant price correction, according to a recent market prediction. Ali Martinez, a crypto analyst, has highlighted a potential bearish scenario for SOL, which could trigger a substantial drop to as low as $90.
According to Ali, Solana has been consolidating within a parallel channel since April, with a lower boundary at $126. Given this, SOL's movement within this trading pattern might have ramifications in the short- to midterm.
Cryptocurrencies continued to fall on Saturday, extending Friday's bearish move that brought Bitcoin to its lowest point in a month.
Bitcoin had slightly rebounded
following a weaker-than-expected
nonfarm payrolls report before
reversing to the downside. Although a
few cryptocurrencies are trading up,
others are down, like Solana, which
has fallen 3.19% in the last 24 hours to
$127. The SOL token is also down
7.18% weekly.
Crucial Solana level to watch.
As the crypto market faces selling pressure, the crucial level to watch, according to Ali, is the lower boundary of the SOL parallel channel at $126. A sustained close below this level would signal a breakdown from the channel, indicating that selling pressure could intensify.
In this scenario, a sustained close below the highlighted key level at $126 might trigger a significant Solana price correction to $110 or even $90.
In the event of a price rebound, SOL could rebound from the channel's lower boundary toward the middle or upper boundaries, positioned at $154 and $187, respectively.
While the market's outlook remains bleak, history presents a silver lining to SOL price action.
According to Ali, historically, two weeks before the Solana breakpoint occurrence, SOL prices tend to rise. It increased by 35% in 2021, 35% in 2022, and 60% in 2023. The market closely watches if this historical trend might repeat as the Solana breakpoint event approaches.