In a post on TradingView, popular crypto analyst AlanSantana provided a detailed analysis of Solana (SOL), highlighting a concerning bearish trend that may lead to a significant price crash. His insights delve into the current market conditions and potential future movements for this cryptocurrency.
AlanSantana notes that Solana is currently situated in the “green zone,” yet indications suggest a downward trajectory. He compares the present weekly timeframe to the conditions observed in late 2021 and early 2022, when Solana experienced substantial growth followed by inevitable corrections. The analyst emphasizes that after such significant price increases, corrections are a natural occurrence.
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Declining Trading Volume
One of the key points raised by AlanSantana is the declining trading volume for Solana. He observes that since reaching its highest buying point in November 2023, trading volume has consistently decreased each week and month.
This drop in volume, especially after a major high, is regarded as a “strong bearish signal.” AlanSantana highlights that despite Solana’s recent performance, interest in the cryptocurrency continues to diminish, further signaling potential challenges ahead.
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Patterns of Lower Highs
The analyst further explains that while Solana remains in a relatively stable position, the prices have not been rising. Instead, they have formed lower highs for the past seven months.
AlanSantana describes this phenomenon as an “illusion of stability,” fueled by the hope of continued growth. He suggests that after such massive growth, a correction is imminent, and the charts indicate a downward trend is expected.
Potential Price Levels and Future Outlook
AlanSantana projects that Solana could experience a significant drop, with various support levels identified below the current price. He mentions key levels at $100, $75, and $55, with the possibility of a flash drop below $50 if market conditions worsen.
Despite the potential for a rapid decline, AlanSantana reassures readers that a swift recovery often follows such dips. He warns that the market may experience a shakeout in 2024, with sudden movements leading to unexpected lows before eventual recovery and growth in 2025.
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