What Investors Need to Know About Solana (SOL) Right Now

Crypto analyst Ali Martinez has forecasted that Solana (SOL), the fifth-largest cryptocurrency by market cap, might be approaching a notable price correction.

Since April, SOL has been trading within a parallel channel with a lower boundary at $126. Martinez warns that if Solana falls below this crucial level, the price could decline significantly, potentially dropping to around $90 in the short to medium term.

Something I forgot to mention is that a sustained close below the channel’s lower boundary at $126 will trigger a significant #Solana price correction to $110 or even $90! https://t.co/Lqfka0ubwo

— Ali (@ali_charts) September 6, 2024

He highlighted this concern on Twitter, noting, “A sustained close below $126 will trigger a major price correction to $110 or even $90!”

Currently, Solana has experienced a 6% decrease over the past week. The critical level to watch is the $126 support; failure to hold above this could lead to increased selling pressure and further price drops to $110 or $90.

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On the other hand, if SOL rebounds from this support level, it could move towards the middle or upper boundaries of the channel, which are at $154 and $187, respectively.

Despite the bearish outlook, there is potential for a rebound. Historically, SOL has shown a tendency to rally ahead of Solana’s annual Breakpoint event, which gathers developers and enthusiasts. In 2021 and 2022, the price increased by 35%, and by 60% in 2023. With the next Breakpoint event approaching, investors are keenly observing whether this trend will continue.

Alexander Stefanov