Solana (SOL) may face a steep decline as market predictions suggest the cryptocurrency could drop to $90. Analysts point to rising selling pressure and key support levels being tested, signaling possible continued losses in the short term.
Solana May Fall to $90
The market may be about to witness a major price drop for Solana (SOL), the fifth-biggest cryptocurrency by market capitalization. Crypto researcher Ali Martinez has pointed out a pessimistic scenario that might cause SOL’s price to plummet to $90 or perhaps below.
Based on Ali’s analysis, Solana has been forming a parallel channel since April, with a support level at $126. Considering this, the short- to medium-term consequences of SOL’s movement within this trading pattern could be significant.
Crypto Market in Bearish Trend
Bitcoin hit its lowest point in a month on Friday, and the downward trend in cryptocurrencies continued on Saturday.
In the aftermath of a nonfarm payrolls report that was worse than expected, U.Today reports that Bitcoin saw a small rally before reverting its decline. While certain cryptocurrencies are seeing gains in trading, others are seeing losses, such as Solana, which has down 3.19 percent to $127 in the past day. Similarly, the SOL token has lost 7.18 percent of its value in the past seven days.
$126 Level is Critical for SOL
Ali claims that the $126 level, which is the bottom boundary of the SOL parallel channel, is the most important level to monitor as selling pressure mounts in the cryptocurrency market.
If this level is consistently closed below, it would indicate a break from the channel and a possible increase in selling pressure. If the price of Solana continues to go below the $126 level, which is a critical level, it might lead to a steep decline to $110 or perhaps $90.
When prices go back up, SOL can go back up from the bottom of the channel to the middle or top borders, which are at $154 and $187, respectively. Despite the pessimistic market forecast, there is a positive historical precedent for SOL price movement.
SOL Historically Climbs Ahead of Breakpoint Event
In Ali’s estimation, the usual pattern for SOL price increases is two weeks prior to the occurrence of the Solana breakpoint. Through 2021, it climbed 35%, 2022, and 2023, it soared 60%. The market is keeping a careful eye on the approaching Solana breakpoint event to see if this historical trend will recur.
