Solana price has not been left behind in the ongoing sell-off in the cryptocurrency industry. This retreat is mostly because of profit-taking among crypto investors after Bitcoin struggled to follow through its recent move to a record high. So, how low can the SOL price drop, and is it time to buy the dip?
Solana Price Technicals Suggest The Crash Will Be Brief
SOL price has dropped by 17.6% from its highest level this year as its strong rally took a breather. This drop has coincided with that of Bitcoin and other altcoins. Bitcoin has dropped below $100,000, while the total market of all coins has retreated to $3.65 trillion.
Technicals suggest that the Solana price crash will likely be brief. On the daily chart, we see that the coin has found some support at the 50-day Exponential Moving Average. It also made a false breakdown below the support at $209.39, its highest swing in March this year.
Solana has, therefore, formed a break and retest chart pattern. This is a situation where an asset retests a previous support or resistance level where it crossed. It is one of the most popular continuation signs in the market.
More so, Solana has formed a bullish flag chart pattern, another continuation sign. This pattern is made up of a long vertical line and a descending channel. In most periods, an asset tends to continue with the initial rally when this pattern forms.
Solana also formed an inverse head and shoulders pattern a few months ago, pointing to more gains ahead.
Solana Price Chart
Therefore, there are odds that the value of SOL will bounce back in the next few days. If this happens, the initial target to watch will be around $235, the upper side of the descending channel. A break above that level will see it rally to the year-to-date high of $263.95.
Conversely, a move below Monday’s low of $204, will point to further downside, potentially to $193, the highest point on June 29. Losing that support will bring the next target at $155 (November 4 low) to view.
Crypto Analysts See SOL Price Crash Being Brief
Most crypto analysts believe that the ongoing crypto sell-off will be brief. In an X post, The Moon Show, a popular crypto analyst noted that Solana price was still bullish and that it had not made a bullish breakout yet. He expects it to have a bullish breakout to $295, citing the symmetrical triangle pattern on the four-hour chart.
Solana Price Forecast
Most analysts note that, in addition to its technicals, Solana price has strong fundamentals. It has become the second-biggest chain in the DeFi industry after Ethereum, with over $8.8 billion in assets.
DEX protocols on Solana are also seeing strong volume. They handled coins worth $34 billion in the last seven days, higher than Ethereum’s $24 billion. Therefore, some pros see SOL price soaring to as high as $500 this year.
The post How Low Can the Solana Price Drop? appeared first on CoinGape.
