- Two market analysts have predicted a drop in Solana’s stock price
- AMBCrypto Predicts Short Term SOL Price Drop to $120 or Maybe Lower
Over the past 40 days, Solana has faced significant challenges on the charts, with SOL down 17.26%. This downward trajectory could accelerate as new information that justifies the decline comes to light.
Notably, after this drop, SOL can be expected to trade higher, which is why the latest drop could be the final catalyst for a major move higher.
Crossroads for SOL, potential decline anticipated
According to Carl RunefeltA leading market analyst, SOL is currently at a crucial juncture and could either rise or fall in the coming days. According to his analysis, Solana is now moving within a descending triangle, a pattern that could have bullish or bearish outcomes depending on its formation.
Source: Trading View
In fact, Runefelt sees a potential drop to $112.5 if bears dominate the market. On the contrary, he also supports the likelihood of a rise to $155, just above the trend peak, where significant liquidity is likely.
Echoing this sentiment, analyst Kaleo also predicts a more marked decline for SOL, targeting the $80 mark. This level has been identified as a key support zone, which should attract enough liquidity to counter the selling pressure and propel prices higher.
Source: Trading View
In his own words,
“(SOL will reach) new historical heights.”
Kaleo had previously considered $120 to be a critical support zone to push SOL to new highs. However, his focus shifted to the $80 level as market conditions evolved.
AMBCrypto also observed a Trending on Coinglass where long traders, who expected the SOL price to rise, suffered losses. In fact, $8.99 million was lost in the last 24 hours as the market moved against their positions.
Additionally, according to Hyblock, the cumulative liquidation level delta has turned negative with a reading of -15. This indicates that short sellers have started to dominate the market.
Further analysis revealed a large liquidity cluster at and below the $120 level, suggesting that price will move lower in these liquidity zones. This can potentially clear out existing liquidity clusters before acting as a pivot point for upward price reversals.
Source: Hyblock
AMBCrypto then went further by monitoring open interest to predict SOL’s next move.
Traders are invested in SOL falling
Open Interest (OI), a metric that measures the total active contracts in a market to gauge liquidity and market sentiment, indicated a bearish outlook for SOL.
At the time of writing, Open Interest had dropped 4.97% to $1.94 billion in just 24 hours. This drop suggested that traders were anticipating a drop in SOL’s price, with the altcoin trading at $127.49.
If this bearish sentiment persists, SOL price could likely decline further from the aforementioned level.
