Solana (SOL) Eyes $200 Resistance, But Analyst Warns of Potential Volatility
As Solana (SOL) shows signs of maintaining its bullish momentum to reclaim the $200 resistance, an analyst cautions that investors should brace for possible turbulence.
Crypto trading expert Alan Santana has noted that Solana, the decentralized finance (DeFi) token, displayed a significant bearish signal in August 2024, indicating a potential deeper decline in its price.
In an August 10 TradingView post, Santana highlighted that Solana’s recent price and volume patterns closely mirror those observed in July 2023.
In July 2023, after more than 45 days of consistent price increases, Solana experienced a strong bullish volume spike. This surge marked the start of a significant upward trend, with increased buyer interest driving the cryptocurrency’s price to new heights.
Solana (SOL) Faces Potential Downtrend: Analyst Observes Bearish Signal Pointing to $90 Level
A year later, the analyst noted a reversal in Solana’s market behavior. In August 2024, after 140 days of bearish price action, Solana exhibited a strong bearish volume spike. This movement suggests a continuation of the current downtrend, with price action aligning with this bearish signal.
The analysis indicates that if this bearish momentum persists, Solana could be headed toward the $90 level—a significant support zone based on past trading activity. The coming days will be crucial in determining whether Solana can stabilize or face a further drop to $90.
Solana’s Potential to Rally
Despite the bearish sentiment, another analyst suggests that investors should be prepared for a possible breakout in Solana’s price. In an August 11 post, the analyst known as Crypto Patel pointed out that Solana has been exhibiting strong bullish momentum, indicating a potential all-time high of $500.
According to Patel, historical performance shows that SOL has demonstrated substantial gains in past bull runs, with significant price increases from its support levels. The chart indicates a robust support zone around $80, which has historically served as a springboard for upward price movements.
Solana Price Analysis
As of press time, Solana is trading at $154, having corrected by approximately 0.3% in the past 24 hours. On the weekly chart, the asset has seen a gain of over 7%.
Currently, investors should monitor Solana’s key support levels to mitigate potential downturns. The major support level is at $150, and falling below this mark could signal further trouble for SOL.