Solana (SOL) Faces Decline as Analysts Predict Further Price Drop
After a strong performance in 2023, where it gained over 200% in value, Solana (SOL) has recently experienced a significant decline, wiping out nearly 30% of its price. Unfortunately, it seems that the worst is yet to come for SOL.
Analysts are now forecasting substantial decreases in SOL’s valuation in the coming days. Although you may be tempted to initiate a long position at the current support level, anticipating a rebound, it’s important to note that the previous bounce lacked the strength to sustain the overall trend.
Cryptocurrency analyst Tryrex predicts a potential decline for SOL, retracing to $71 based on their post on January 22.
“It might be tempting to open a long right now and expect a bounce on this support level. However, the previous bounce was too weak to maintain the trend. I am betting on a crash back down to $71.”
Other Analysts Share Bearish Outlook
With Solana’s current outlook and technical indicators pointing towards further lows, other analysts also express their thoughts on the next support level and potential dips for SOL.
Digital asset analyst LuxAlgo suggests that the negation of the parallel ascending channel indicates more downward movement for SOL in their post on January 23.
Examining the daily chart, another analyst named Dootr identifies observable downward movement below a significant support level, indicating potential retesting at around $70.
All three analysts seem to converge on the conclusion that SOL is likely to retrace its price to the next support level at approximately $70.
SOL Price Analysis
Currently trading at $80.65, SOL has experienced a decline of -7.67% in the previous 24 hours, -15.78% in the last week, and -15.86% in the previous month.
Technical indicators suggest a ‘sell’ signal with moving averages and oscillators aligning with this bearish outlook.
While it remains uncertain whether SOL’s downward trend will reverse, the current indicators, analyst predictions, and performance all point towards a bearish outcome.
Hot Take: SOL Faces Challenging Times Ahead
Solana (SOL) has encountered significant price drops after its impressive performance in 2023. Analysts are predicting further declines for SOL, with expectations of retracing to around $71. The lack of strength in previous rebounds raises concerns about a sustained trend reversal.
Other analysts share this bearish sentiment, pointing to the negation of the parallel ascending channel and observable downward movement below significant support levels. These indicators suggest potential retesting at approximately $70 for SOL.
Currently trading at $80.65, SOL has seen a decline in value across various timeframes. Technical indicators reinforce the bearish outlook.
It remains to be seen whether SOL can overcome these challenges and regain positive momentum. However, the current landscape suggests a continuation of the downward spiral for this cryptocurrency.
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