Solana On watch: SOL Price Could Crash To $90 If This Happens
September 07 2024 - 1:30AM
NEWSBTC
As the first week of September concluded, the Solana (SOL) price
settled at $124, raising concerns for investors as the fifth
largest cryptocurrency risks breaching the critical $100
threshold. According to market analyst Ali Martinez, recent
technical analysis indicates that a sustained close below the
channel’s lower boundary at $126 could trigger a significant price
correction for Solana, potentially dropping to $110 or even $90.
Solana Price Challenges In a social media update, Martinez
elaborated on the current market conditions, noting that the TD
Sequential indicator had previously presented a buy signal on the
daily chart. This suggested a possible rebound for Solana from the
lower boundary of its trading channel towards higher levels at $154
and $187. However, the broader market’s ongoing selloff has
invalidated this bullish signal, causing Solana to suffer losses of
approximately 20% over the past two weeks and 13% in the last
month. Related Reading: Shiba Inu Recovery To $0.000081 ATH Levels
Still In Play Despite these challenges, there remains a glimmer of
hope for Solana’s recovery. Martinez pointed out a historical
pattern indicating that Solana typically experiences a price
upswing in the two weeks leading up to its “Breakpoint
event”. In 2021, the cryptocurrency surged by 35%, the
following year it increased by another 35%, and in 2023 it soared
by 60%. With only 16 days left until the 2024 “breakpoint event,”
the analyst suggests that this trend of the past few years could
continue, which would mean a significant recovery for the token. If
the historical pattern holds, Solana could potentially rally 35%
towards $167, but remain just below the upper limit of its current
channel at $187. However, as Martinez pointed out, the key is for
SOL to recover and consolidate above the $126 level in the coming
days to avoid further declines. Influx of Capital From FTX
Creditors And Historically Bullish Q4 Further adding some sense of
hope for SOL investors, the fourth quarter post-Bitcoin (BTC)
Halving events has historically shown bullish trends, suggesting a
potential market recovery that could also benefit SOL
significantly. Adding to this hopeful outlook, the
now-defunct crypto exchange FTX is set to distribute over $16
billion in cash to creditors affected by its collapse. This influx
of capital into the market could signal a substantial return,
particularly impacting four key cryptocurrencies. Analyst OxNobler
highlights that a majority of the affected FTX clients are retail
investors, indicating that a significant portion of the recovered
funds is likely to re-enter the crypto market. Related
Reading: Here’s How Cardano Price Will ‘Survive’ A US Recession:
Crypto Analyst The expectation is that a substantial share of these
funds will flow into Bitcoin and other dominant cryptocurrencies
such as Ethereum (ETH), Solana, and Binance Coin (BNB). The
anticipated return of capital not could stabilize the market but
also present an opportunity for price increases across these
assets. However, it remains to be seen if this is indeed the case,
but if it is, it could be a much-needed catalyst for the market
following the strong sell-off activity that the largest
cryptocurrencies on the market have experienced in recent
months. Featured image from DALL-E, chart from
TradingView.com
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