Solana Faces Potential Major Price Correction: What Investors Need to Know
Solana (SOL), the fifth-largest cryptocurrency by market capitalization, is on the brink of a significant price correction. Ali Martinez, a prominent crypto analyst, has highlighted a potential bearish scenario for Solana, suggesting that the coin could see a sharp decline, possibly dropping to $90.
Since April, Solana has been consolidating within a parallel channel, with a key support level around $126. According to Martinez, Solana’s movement within this trading pattern could have critical implications in the short- to medium-term.
On Saturday, the cryptocurrency market continued its downward trend, extending Friday’s losses. Bitcoin, in particular, plummeted to its lowest point in a month. Although Bitcoin experienced a brief rebound following weaker-than-expected non-farm payroll data, it quickly resumed its decline. Other cryptocurrencies also saw mixed performances. While some saw a modest uptick, Solana fell by 3.19% in the last 24 hours, dropping to $127. Over the past week, SOL has experienced a decline of 7.18%.
Key Level to Watch for Solana
With the crypto market under increasing selling pressure, Martinez identified $126 as a crucial level for SOL. This price point marks the lower boundary of the parallel channel that has contained Solana’s price movements. Should SOL close below this level, it would signal a breakdown of the channel, suggesting intensified selling pressure in the market.
If Solana sustains a close below the $126 threshold, it could trigger a substantial correction, with potential price targets at $110 or even as low as $90. However, in the case of a bullish reversal, Solana might bounce back from the lower boundary of the channel, potentially reaching the middle or upper boundaries at $154 and $187, respectively.
Historical Trends Offer Hope for Solana
While the current market outlook appears bleak, history offers a glimmer of hope for SOL’s price action. According to Martinez, Solana has exhibited a recurring pattern of price increases in the weeks leading up to its “breakpoint” event. In 2021, 2022, and 2023, SOL’s price surged by 35%, 35%, and 60%, respectively, two weeks prior to these critical events.
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With the next Solana breakpoint event on the horizon, market participants are closely watching to see if this historical trend will repeat itself once again. If so, Solana could defy its current bearish outlook and regain momentum in the lead-up to this key moment.
In summary, while Solana faces potential downside risks, historical data suggests there may still be room for a bullish move. Investors should closely monitor the $126 level, as it could be the deciding factor for Solana’s next major price movement.
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