The Future of Solana: Analyzing Potential Price Movements
Over the past 40 days, Solana has encountered notable challenges on the price charts, resulting in a 17.26% decline in SOL. This downward trend may gain momentum as additional insights pointing to a potential drop emerge.
Following this dip, SOL is poised to experience an upward trajectory, indicating that the recent decline could serve as a catalyst for a significant price surge.
Evaluating SOL’s Position and Expected Decline
Renowned market analyst Carl Runefelt believes that SOL is currently at a critical juncture and faces the possibility of either an upswing or a downturn in the near future. According to his assessment, Solana is currently engaged in a descending triangle pattern, which could lead to either bullish or bearish outcomes based on the pattern’s formation.
Runefelt has predicted a probable decrease to $112.5 if bearish sentiment prevails in the market. Conversely, he also suggests a potential increase to $155, slightly above the pattern’s peak, where a substantial amount of liquidity might be present.
Similarly, analyst Kaleo anticipates a more significant decline for SOL, aiming for the $80 threshold. This level is identified as a crucial support region that is expected to draw sufficient liquidity to counteract selling pressure and propel prices upwards.
In his assessment,
“[SOL is poised to achieve] new all-time highs.”
Kaleo originally identified $120 as a critical support level for propelling SOL to new peaks. However, shifting market dynamics have caused him to focus on the $80 mark.
CryptoCrypto also noted a trend on Coinglass where long investors, who were bullish on SOL’s price increase, faced losses. A total of $8.99 million was lost within a day as market movements worked against their positions.
Moreover, per Hyblock, the cumulative liquidation level delta turned negative with a reading of -15, indicating a shift towards market dominance by short sellers.
In-depth analysis uncovered a substantial liquidity cluster at and below the $120 level, suggesting that prices may trend lower towards these liquidity zones. This process could potentially clear existing liquidity clusters before functioning as a pivot point for upward price reversals.
Furthermore, CryptoCrypto delved into monitoring Open Interest to forecast SOL’s future movements.
Traders’ Expectations Regarding SOL’s Decline
Open Interest (OI), a metric used to gauge liquidity and market sentiment by measuring the total active contracts in a market, indicated a bearish sentiment towards SOL.
Currently, the Open Interest has dropped by 4.97% to $1.94 billion within 24 hours, reflecting traders’ anticipations of a price decrease in SOL, currently trading at $127.49.
If this bearish outlook persists, SOL’s price may likely see a further decline from its current position.