Solanas bearish potential emerges with potential loss of 100 price support

After failing to surpass the $155 mark in the past day, it appears that Solana (SOL), a decentralized finance (DeFi) asset, is poised for further decline, according to crypto trading expert Alan Santana. Santana suggests that the technical indicators for Solana are showing bearish potential, indicating a possible drop below the crucial $100 support level.

In a recent post on TradingView, Santana explains that Solana is currently undergoing a major ‘ABC’ correction pattern. This pattern, commonly observed in technical analysis, suggests that market prices move in predictable patterns, often forming a zigzag lower. The ‘ABC’ correction consists of three parts: Part A involves a chart moving higher and then dropping, Part B sees a rebound that makes a lower high, and Part C continues to make a lower low, sometimes holding the first low.

Santana believes that Solana has reached the top of wave B for the last sub-ABC wave, indicating that the asset could drop below $100. This prediction aligns with Solana’s trading price in January 2024, suggesting a potential return to a base level of around $80. Santana suggests a price range between $80 and $100 to account for potential variability.

The potential price movement identified by Santana is referred to as an SSD wave (Surprise-Super-Down-Wave) due to its significant magnitude, estimated to be between 40% and 50%. Santana states, “The top of wave B for the last sub-ABC wave is in… Solana is now headed toward $80. This is the same price at which Solana traded around January 2024. Let’s make it a range to be fair: Solana is moving toward the $80 – $100 price range next.”

Santana also points out a notable decrease in trading volume, indicating the potential for further downside. If Santana’s analysis holds true, Solana could experience a significant drop, losing its $100 support and potentially reaching as low as $80, which would represent a decline of over 45% from its current price.

Although the sudden correction in Solana’s price aligns with the overall market sentiment, it should be noted that Solana has previously defied market trends and rallied, largely due to meme coin activity on the platform. Despite this, SOL is currently trading in the red, despite a recent report indicating that Solana-based meme coins outperformed Ethereum (ETH)-based counterparts by 800% in the first half of 2024.

Looking ahead, if SOL drops below $100, it could present an opportunity for investors who missed the recent rally to get involved. This coincides with the hype surrounding a possible exchange-traded fund (ETF) for Solana.

At the time of writing, Solana is valued at $143 and is facing resistance at the $150 level, with daily losses of over 3%. However, on the weekly chart, SOL has gained almost 4%.

Overall, investors are closely monitoring Solana’s short-term price movements, with the $140 support level being a key zone to watch. Losing this level could lead to further losses, while reclaiming the $145 resistance zone could be possible if the general market records an upside.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative, and there is a risk of losing capital.