Solana Faces Rollercoaster Ride: Will It Plunge or Soar?

As Solana (SOL) shows signs of potentially regaining the $200 resistance level, one analyst cautions investors to brace for potential volatility.

Crypto trading expert Alan Santana has highlighted a concerning bearish signal for Solana in August 2024, suggesting a possible deeper price decline for the decentralized finance (DeFi) token.

Santana noted that Solana’s recent price and volume trends are strikingly similar to those seen in July 2023. Back then, after over 45 days of steady gains, Solana saw a significant bullish volume spike, which ignited a strong upward movement as buyers pushed the price higher.

Fast forward to August 2024, and the scenario appears reversed. Following 140 days of bearish activity, Solana exhibited a strong bearish volume spike, indicating the continuation of the downtrend. This pattern suggests that Solana could be headed towards the $90 support level based on historical trading data.

READ MORE:

Major Cryptocurrency Token Unlocks Expected This Week

The upcoming days will be critical in determining whether Solana can stabilize or if it will drop further to $90.

Despite the bearish indicators, another analyst, Crypto Patel, posits that investors should be prepared for a potential price breakout. In an August 11 post, Patel noted that Solana has been showing strong bullish momentum, hinting at a possible rally to an all-time high of $500.

Patel’s analysis points to Solana’s historical performance during past bull runs, where significant gains followed substantial support levels. The chart shows a robust support zone around $80, which has historically propelled the price upwards.

Alexander Stefanov