Renowned TradingView analyst Alan Santana has issued a stark warning for Solana (SOL) investors, revising his forecast to predict a sharp decline to $55. This updated target signifies a more severe downturn than earlier projections, reflecting growing concerns about the cryptocurrency’s stability.
Santana’s revised prediction underscores a critical juncture for Solana, with the $55 level lacking significant support, which could amplify the downward momentum. His analysis draws a cautionary parallel to Ethereum’s recent performance, highlighting that, as a smaller and less established asset, Solana is more vulnerable to a potential crash. Santana urges traders to stay vigilant, given the risk of substantial crypto wealth erosion.
Support Levels And Bearish Trends
In his detailed analysis, Santana identifies key Fibonacci retracement levels that could influence Solana’s price action. The 0.382 level at $137.03, the 0.5 level at $114.18, and the 0.618 level at $91.34 may offer temporary support. However, the more significant 0.786 retracement level at $58.82 closely aligns with Santana’s revised target, indicating a critical support zone.
Santana also notes a persistent bearish trend, with Solana struggling to break above a descending trendline. A rounding top pattern further amplifies the bearish outlook, suggesting a potential reversal in the asset’s price trajectory.
Speculative Decline Timeline
Santana speculates that if Solana begins its downward movement around August 29, it could persist for three weeks, potentially hitting a low by September 19. While predicting exact movements remains challenging, he hints at a possible bounce before reaching a final lower low, signaling the end of the current bearish wave.
This speculative timeline reflects broader market trends, with major cryptocurrencies like Bitcoin, Ethereum, and XRP also experiencing declines. Santana suggests that smaller and medium-sized projects, including Solana, might recover more quickly once the downturn concludes.
Comparing Solana’s Decline to Ethereum’s Pattern
Santana’s bearish stance is echoed by other market analysts, though his outlook is notably more pessimistic. While some have projected a drop to $85, Santana’s forecast envisions a potential low of $33. Market pundit Benjamin Cowen adds another layer of analysis, comparing Solana’s trading patterns to Ethereum’s historical performance against Bitcoin.
Cowen notes that ETH/BTC experienced a significant rebound of over 500% following a substantial drop, followed by consolidation and another correction. Similarly, Solana’s trading pair SOL/BTC has shown a 90% drop with a notable rebound. Cowen suggests that Solana may follow a similar path, with consolidation mirroring Ethereum’s past patterns.
Also Read: Solana (SOL) Alert – Crypto Analyst Benjamin Cowen Warns Of Potential 40% Drop As Fed Rate Cuts Loom
At press time, Solana is trading at $145, having lost 1% of its value over the past day. A decline to $55 would represent a staggering 62% drop, emphasizing the potential severity of the downturn.
In summary, Santana’s revised target and the broader market analysis paint a concerning picture for Solana’s short-term future. Investors should stay alert and prepare for potential volatility as the cryptocurrency navigates its challenging trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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