Solana 21% drop has shocked the crypto market, plummeting to a low of $110 in a single day. This drastic fall has positioned SOL as the hardest-hit cryptocurrency among the top 10, dragging its value back to levels not seen since February. Despite the current bleak scenario, there are subtle indicators hinting at a possible recovery, sparking curiosity among investors about Solana’s future trajectory.
SOL Price Analysis
Following an uptrend that resulted in a breakout above the descending resistance level on July 20, a potential retracement was anticipated. Ideally, SOL would have bounced back, retesting the broken resistance for support, thus confirming a bullish trend. However, earlier analyses warned that if the breakout level did not hold, SOL could face further declines, indicating that the corrective structure from mid-March might still be in play, suggesting another downward move.
With SOL dropping to a new low below its horizontal support around $120, the bearish scenario has unfolded. The daily chart’s RSI is now at an oversold level of 27%, levels last seen on April 13, which reflects a similar market environment.
Currently, clear signs of a reversal are absent. Nevertheless, considering the decline and the current level of SOL, a consolidation period is expected before a reversal can occur. The downtrend starting from July 22 signifies the fifth wave since mid-March, concluding in a complex WXYXZ correction. This complexity hints at a potential reversal on the horizon.
SOL Price Prediction
Examining the hourly chart and the wave structure behind the recent downtrend, we observe that this three-wave pattern has fully developed, with the latest downward movement comprising a five-wave move. Although SOL is still seeking support, diminishing momentum is suggested by the hourly chart MACD, which shows an uptrend in the oscillator bars. There could be another lower low before a reversal occurs. Even in this scenario, SOL should consolidate and recover slightly.
Our next target is around $140. The interaction with this area and subsequent developments will provide further insights into SOL’s future outlook.
Sarah Wilson – Author and Content Writer at AiBlock Insider
Sarah Wilson is a seasoned author and content writer with a passion for exploring the intersection of artificial intelligence and blockchain technology. With a rich background in tech journalism, Sarah brings a unique perspective to AiBlock Insider, where she crafts insightful articles that delve into the latest advancements, trends, and implications of these transformative technologies.
