Despite being one of the top performers over the past year, Solana (SOL) has received a bearish warning that contradicts the prevailing optimism, which includes predictions of its price surging to $1,000. However, not everyone is on board with this bullish sentiment.
A crypto analyst has forecasted a potential 42% crash for Solana, signaling a more cautious outlook for the altcoin.
Solana Price Shows Bearish Signs
In a recent analysis on TradingView, crypto analyst Alan Santana highlighted that Solana’s price is beginning to show bearish signals. Santana points out that the trends emerging in 2024 are more negative compared to those in 2023.
A key factor in this outlook is the change in volume patterns, with 2024 displaying more red spikes, which indicate a decline, as opposed to the green spikes seen in 2023 that represented price surges.
For instance, in 2023, the chart showed large green volume spikes, reflecting rising volumes and a subsequent increase in Solana’s price. However, in 2024, the volume spikes have been mostly red, signaling selling pressure, which has resulted in price drops. This shift in trend suggests that Solana’s price could face further downside from its current level.
The analyst has set a target price of $80, which would represent a 42% crash from current levels. Should the downturn continue and Solana retraces its gains from 2023, the price could potentially dip as low as $60, resulting in a 50% decline.
Now May Not Be the Time to Be Bullish
Santana cautioned investors against being overly optimistic about Solana’s price at this point. He noted that despite Bitcoin’s recent recovery, Solana’s price has barely moved, which may indicate that the bullish momentum has run its course.
“Bitcoin rallied today, which surprised some people, but the effect on Solana and other altcoins was minimal. There’s basically no growth here,” Santana explained, emphasizing that this lack of movement is a sign that the correction phase may be nearing its end.
Conclusion: Solana’s Bearish Path—A 50% Drop Ahead?
While some continue to forecast a bullish future for Solana, the technical signs suggest a more cautious approach is needed. With analysts like Alan Santana predicting a significant price decline, it might be time for investors to reassess their strategies. A potential crash to $80, or even $60, could be on the horizon if the current bearish trend holds.
