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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.