Crypto analyst Alan Santana has shared a bearish outlook for Solana (SOL) on TradingView. He has pointed to several indicators that suggest a potential price crash.
Moreover, Santana’s analysis focuses on price dynamics, the Relative Strength Index, and the Moving Average Convergence Divergence indicator.
Solana Price Dynamics Signal Impending Drop
Santana argues that Solana’s recent price action follows a pattern of a two to three-week bounce followed by a drop. He notes that as the current week progresses without substantial bullish movement, the risk of a downturn increases.
Source: Alan Santana
“Another week without major bullish action increases the risk,” Santana states. The analyst also highlights the importance of the “baseline” price level, which refers to Solana’s trading price in January 2024.
Santana observes that many altcoins have already revisited or fallen below this baseline during the 2024 correction phase. He suggests that Solana is likely to test this support level or potentially drop lower in the coming weeks.
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Show more +Show less – SOL Indicators Signal Bearish Trends
Examining Solana’s Weekly RSI, Santana finds it trading in the bullish zone but considers it largely neutral. “It doesn’t reveal much. It is neutral and supports any outcome,” he explains.
However, he notes that the RSI has been in a bearish trend since December 2023, showing lower highs and lower lows. The Weekly MACD for Solana presents a clearer picture, according to Santana.
Moreover, he describes it as showing “a very strong and clear downtrend” with “a very strong bearish bias.” The analyst emphasizes that the MACD is pointing lower and continuing to move downward, reinforcing the bearish outlook.
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Conclusion
While Santana acknowledges these are simple signals, he believes they can help traders develop a clearer understanding of current market conditions for Solana. The combination of price dynamics, RSI trends, and MACD indicators all point towards a potential price crash for SOL soon.
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