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Solana Price Falls 14% In Two Days –SOL Headed To $100?

Last Updated July 5, 2024 9:50 AM
Nikola Lazic
Last Updated July 5, 2024 9:50 AM

Key Takeaways

  • Solana dropped from $154.60 to $131 recently.
  • SOL’s outlook turned bearish, approaching $120 support.
  • Potential further decline targets around $102.

On July 2, the price of Solana was in an uptrend, reaching $154.60 at its highest point. Since then, it made a downturn, falling close to $131 today, and is still trending downward. Previously, SOL had a bullish outlook but has now turned bearish, hinting at a potential lower low ahead. 

With its significant horizontal support of $120 getting close, will we see a breakout below it, and if so, is the next target $100? 

SOL Price Analysis 

On March 18, Solana (SOL) peaked at $210 but sharply declined to $120 by May 1, marking a 43% drop. The price impressively recovered to nearly $190 by May 21, breaking through a crucial resistance level that had previously served as support.

SOL
SOLUSD | Credit: Nikola Lazic/Tradingview

After this recovery, SOL initially showed potential for further gains but soon fell below this critical level. The downturn from May 1 has shown three distinct waves, indicating a possible prolonged bearish trend. The break below the $160 mark confirmed that the surge to May 21 was merely a three-wave corrective pattern, suggesting the current decline might be part of a larger bearish phase or a complex three-wave correction starting from March 18.

Based on the trajectory of the current increase from June 24, two outcomes are possible. Chart analysis indicates SOL is consolidating below $157, forming a fourth wave before potentially descending to a new low at $102 in its fifth wave, completing a three-wave ABC correction.

SOL Price Prediction 

Its rejection at the $153 confirmed this scenario. Now, as the price is close to its $120, it could make yet another interaction, ending the correction as a descending flat triangle. 

Alternatively, and in our mind, a more probable scenario would be further downside movement past the $120 support. The descending resistance indicates that the sellers have continuously pressured the price. 

Projecting the same length as the move from its yearly high of $210 to its first low of $121 on April 13 and to the first higher low of $190 on May 20, which is assumed to be the B wave, we come with a target of $102. 

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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