Solana shows signs of bearish potential poised to drop below 100 support level
After failing to reach the $155 mark, Solana (SOL) is showing signs of potential downside, according to crypto trading expert Alan Santana. Santana believes that Solana is undergoing a major ‘ABC’ correction pattern, which suggests a possible drop below the $100 support level. The ‘ABC’ correction is a concept in technical analysis that suggests market prices move in predictable patterns, forming a zigzag lower. Santana explains that Solana’s chart indicates the top of wave ‘B’ for the last sub-ABC wave is in, indicating a potential drop to around $80. He suggests a price range between $80 and $100 to account for potential variability. Santana refers to this potential price movement as an SSD wave (Surprise-Super-Down-Wave) due to its significant magnitude, estimated to be between 40% and 50%. The analysis also highlights a decrease in trading volume, further indicating potential downside. If Santana’s analysis holds, Solana could experience a significant decline, potentially reaching as low as $80. Despite a new report showing that Solana-based meme coins outperformed Ethereum-based counterparts by 800% in the first half of 2024, SOL is currently trading in the red. However, if SOL drops below $100, it could present an opportunity for investors who missed the recent rally to get involved, especially with the hype around a possible exchange-traded fund (ETF) for Solana. At the time of writing, Solana is valued at $143 and is facing resistance at the $150 level, with daily losses of over 3%.
