Expectations of Solana price to exceed $200 have been widespread with the recent rebound. In some cases, predictions have even reached $1,000 for the cryptocurrency, but one crypto analyst is heading in the opposite direction. In a recent analysis, Alan Santana Planned SOL stock market crash that could wipe out all the gains from last week.
Solana shows similar patterns through 2023.
In the analysis, crypto analyst Alan Santana points out that the Solana cryptocurrency is showing similarities to the trend that was observed in 2023. Last year, the trend was about the altcoin’s trading volume increasing, which was the beginning of a bull run. However, this time, the volume is more bearish, which could suggest the beginning of a bearish trend for the digital asset.
In July 2023, Solana saw a significant escalate in purchase volume, which was the highest level at the time. As the analyst points out, this robust purchase volume began after about 45 days of bullish price action altcoin. The result was a continuation of the upward trend, eventually reaching $209 less than a year later.
Applying this trend to the current trend can support identify where Solana price may be headed. This time, there has been a noticeable escalate in SOL sales volume. This comes after 140 days of continuous bearish action on SOL price.
Using the 2023 trend results here would show us that Solana price could be headed for another crash. Given that current sales volume is the highest in over a year, the crash is expected to be quite significant.
How low will the price of SOL fall?
As bearish selling pressure on Solana’s price increases, this poses a threat to SOL’s triple-digit status. On his chart, Alan Santana points out multiple levels where he sees price SOL falling to, and both are below the $100 level.
The first is around $90, which is a price drop of around 40% from current levels. Interestingly, the second target is placed below $60, which would imply a price drop of over 50%. Furthermore, a drop to this level would mark a fresh yearly high, as SOL has not fallen below $60 since November 2023.
Featured image created with Dall.E, chart from Tradingview.com
