Solana (SOL) Price Alert: Is a 50% Drop Imminent?

Solana (SOL) experienced significant upswing during late summer, but has seen a notable downturn in recent months. Analysts are now suggesting that further declines to below the $70 mark may be on the horizon.

Potential for a Major Drop?

Ali Martinez, a notable analyst, has monitored SOL’s activities from March 2024 to now. He argues that the current price behavior resembles a classic “head and shoulders” pattern, with the apex forming last year when Solana peaked at $240. He believes this could lead the value to dip to as low as $66.20, indicating a possible 50% drop from the current $132.

“Head and shoulders” is a bearish pattern that appears when the price peaks three times: the first forms the left shoulder, the second becomes the head, and the third represents the right shoulder. A breakdown below the support level, known as the “neckline,” is a signal for traders to expect further downturns.

Martinez’s view is echoed by fellow analyst, Crypto Tony, who speculates a minor uptick to $134 could precede an even greater decline.

“Playing this range until we break. Move up to $134, and then I will be looking to short down,” he noted.

Currently, SOL is trending toward overbought conditions, posing additional challenges for bullish scenarios. The asset’s Relative Strength Index (RSI) is nearing 69, suggesting that a value above 70 is considered detrimental.

The Positive Outlook

Even amid the prevailing negative sentiment from several analysts, others maintain an optimistic perspective regarding SOL’s potential recovery. TraderSZ, a prominent analyst with a following of nearly 700,000, predicts that SOL may exceed the $160 mark soon, while James has set a target of $152.

Recent exchange net flows indicate a migration towards self-storage solutions, suggesting less immediate selling pressure, which is often a bullish indicator. Conversely, increased activity on exchanges hints at possible future selling spikes.

SOL RSI Source: RSI Hunter

SOL Exchange Netflow Source: CoinGlass

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