As a seasoned analyst with over two decades of market analysis under my belt, I must admit that the current state of Solana (SOL) is causing me a bit of concern, much like how a beloved pet might be acting unusually and making us worry about its health.
Over the past year, Solana (SOL) has demonstrated remarkable resilience, consistently moving along a bullish path. However, recent market trends suggest that its current momentum could be at risk. Despite repeated attempts to surpass a crucial resistance level of $138, Solana has yet to sustain growth beyond this significant barrier.
The collapse of this resistance has made the cryptocurrency more susceptible, especially since it’s currently close to crucial support points that may dictate its upcoming trajectory.
Photo: TradingView
Solana Faces Key Threats
One potential worry for Solana’s technical progression is the approaching formation of what’s known as a “death cross.” This bearish indicator happens when the 50-day moving average (MA) falls below the 200-day MA. For numerous traders and analysts, this death cross pattern serves as a caution that long-term upward price movements might be coming to an end, often preceded by a substantial drop in price value.
If the death cross appears for Solana, it could signal the conclusion of its impressive rally that started in October 2023. With investors initially keeping a positive outlook on Solana’s future, they are now reconsidering their holdings as the likelihood of a market collapse draws nearer.
Regarding the technical aspect, the Moving Average Convergence Divergence (MACD) indicator provides some optimism. Despite the overall trend being bearish, the MACD hints that the short-term bearish pressure might be decreasing. This could possibly trigger a momentary rally for Solana, especially if it manages to maintain its $124 support point.
If Solana manages to sustain its current position, it might temporarily halt the ongoing price decrease and pave the way for an upward swing. However, falling below $124 may instigate intense selling activity, which might drag the cryptocurrency down towards its next key support at $120. The $120 mark is crucial because it has served as a robust foundation since March 2024. If this level is broken, Solana could be vulnerable to entering a more extensive bearish trend.
Currently, the value of Solana stands around $130, with investors keeping a close watch on the $124 price point as a potential area for a rebound.
Analyst Warnings Raise Concerns
Crypto expert Alan Santana has sounded a warning about Solana’s potential future. He highlights that while Solana saw significant advancement in 2023, the current indicators for 2024 are not as favorable. Santana observes that the recent surge in trading activity is now displaying bearish tendencies, contributing to a decline in Solana’s value.
He warns that the price could fall by up to 42%, potentially reaching as low as $80. This would mark a significant decline from recent highs. Santana’s concerns are highlighted by Solana’s weak performance despite Bitcoin’s recovery, suggesting that the bullish period for Solana might be ending. Investors are advised to be cautious and consider the possibility of further declines in Solana’s value.
Read More
Sorry. No data so far.
2024-09-16 13:24