As a seasoned crypto investor with a decade of experience under my belt, I have seen countless market cycles and know that the cryptocurrency world is as volatile as it gets. Currently, Solana (SOL) is testing critical support levels at around $130, having lost nearly 40% from its 2024 highs.
Currently, similar to Bitcoin and other leading altcoins, Solana is experiencing a downturn, reversing losses from earlier in the year. As we speak, SOL, the currency associated with the Solana smart contracts platform, is being traded at approximately $130, testing a significant support threshold.
Currently, the third-largest cryptocurrency asset has dropped approximately 40% from its peak value of about $210 in 2024. At this point, the market indicates that sellers have the upper hand, and if the trend doesn’t reverse and start favoring buyers soon, the near future might remain gloomy for investors.
Is SOL Preparing For $100? Triple Bottom Forms
While some experts predict an upward trend towards the $200 mark in the near future, others hold a pessimistic view. In contrast, an analyst looking at X suggests that Solana (SOL) could dip down to around $100 based on current market trends.
This perspective is worth mentioning as it aligns with the recent decline from a significant resistance level, which was previously reinforced at approximately $140. Currently, the coin is being traded at $130. The analyst anticipates further losses in line with a potential continuation of the bear trend, provided there are no changes in the market conditions. In essence, if things remain the same, Solana (SOL) may gradually descend lower according to this viewpoint.
Based on the candlestick pattern observed in the daily chart, it’s not unexpected that the prediction holds true. Previously discussed, Solana (SOL) has dropped approximately 40% from its peak in March.
The current forecast agrees with recent market trends, as Solana (SOL) prices have been fluctuating within a broad spectrum between approximately $210 at the upper limit and around $130 at the lower end. At present, SOL is attempting to re-establish its multi-month support level, forming what appears to be a triple bottom pattern.
To maintain an uptrend from October 2023 to March 2024 for SOL, it is crucial that the cryptocurrency locates a solid support level near its current prices. If this happens, further growth beyond $140 and $160 may stimulate interest, propelling the coin towards potential targets of $190 and ultimately $210 or record highs for 2024.
Solana Dumps, Bitcoin Sell-Off And Pump.fun Liquidation Impact Sentiment
Even so, the leg up will depend on a multitude of factors. A recovery in Bitcoin prices would almost likely lift altcoins, of which SOL is highly ranked. Besides this, the resurgence of meme coin activity on Solana will be a big price movement.
According to data from Lookonchain, it appears that Pump.fun, a meme coin platform based on Solana, has been converting its SOL holdings into cash. As a significant stakeholder, this action could have a negative overall effect due to its potential impact on sentiment and by fueling doubts about the robustness of buyers’ power.
Acting as a significant SOL whale, the more they offload, the more retail traders liquidate, mirroring their actions. By September 3, the meme coin launchpad had disposed of approximately 264,000 SOL, equivalent to over $1.3 million.
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2024-09-06 22:16