Solana is preparing for a big dump? Analyst: Strong signals have appeared, next step may test 'this level'

Market - 2024.08.13 - By Sean
With the recent significant correction in the market, Cryptocurrency trading expert Alan Santana believes that Solana is currently showing a clear bearish signal, which may indicate a further price decline.
Solana ready for a big big dump?

After experiencing the devastating blow of FTX exchange's collapse, Solana ($SOL), known as the Ethereum killer, rose from the ashes and successfully demonstrated the resilience of $SOL price to investors over the past year.

Despite the soaring of BTC ($BTC) since early 2024, driving Solana equally strong bullish, but with the recent significant correction in the market, Cryptocurrency trading expert Alan Santana believes that Solana is currently showing obvious bearish signals, which may indicate further price decline.

Analyst: Strong signals have appeared

Alan Santana showcased a chart on TradingView on August 10, pointing out that the recent price and trading volume patterns of Solana ($SOL) are very similar to those in July 2023. However, the situation this time is not optimistic. In July 2023, after experiencing a stable price pump for 45 days, Solana ($SOL) saw a sudden surge in trading volume and started a significant pump, driving its price to a new high.

However, unlike the pump situation in July 2023, in August 2024, Solana ($SOL) experienced a 140-day bearish trend before the Trading Volume surged again, indicating an increase in selling pressure in the market, which could be a strong bearish signal.

Alan Santana believes that if the current fall trend continues, the price of Solana may fall to $90, and the trend in the next few days is crucial.

The Rebound potential of Solana ($SOL)

However, not all voices in the market are so pessimistic. Another analyst named Crypto Patel has a different prediction for the future of Solana.

Crypto Patel tweeted on social platform X (formerly known as Twitter) that despite the current bearish market sentiment, he observed that the price of Solana ($SOL) still has the potential to break through. Crypto Patel's analysis is based on the historical data of Solana ($SOL), and he points out that Solana ($SOL) has shown a strong pump pattern in previous Bull Markets after touching key support levels. For this Bull Market, Crypto Patel observes a strong support area near $80, which has been an important support level in the past year. If this trend continues, Solana could reach a historical high of $500 in the coming months.

As of the time of writing, the transaction price of Solana ($SOL) is $145, a decrease of about 1.5% in the past 24 hours, and a 4.7% increase for the week.