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Will Solana Surge to $299 or Drop to $109? Key Levels to Watch Are…
Solana (SOL) is currently experiencing a strong bearish sentiment, with the altcoin declining by 14.72% over the past week. The cryptocurrency has failed to keep up with the uptrend since reaching its local high of $223 and has instead been trading sideways within a range of $184 and $193 for four days.
Solana’s price movement has been marked by indecision, as prices are making lower highs and higher lows within a symmetrical triangle. This consolidation indicates that neither buyers nor sellers have gained control, resulting in a stalemate. Historically, this kind of situation often precedes a breakout, which could be accompanied by an increase in trading volume.
Ali Martinez, a popular crypto analyst, suggests that if Solana breaks above $214 or below $183, it could spark a 40% price move. If the cryptocurrency manages to break through the upper level of its consolidation range, it may potentially surge to $299. Conversely, if it drops below this point, it is likely to fall all the way down to $109.
Market sentiment analysis also indicates that Solana’s short-term prospects are grim, with bearish sentiments persisting in the market. The weighted sentiment has been negative for four days now, signaling a strong downward pressure on the cryptocurrency. Furthermore, Solana’s Directional Movement Index (DMI) suggests that there is increasing downward momentum.
Currently, 52% of accounts are taking short positions, while only 48% are going long. This stark contrast between the two positions highlights that investors are overwhelmingly bearish and expect prices to continue dropping.
In conclusion, it seems likely that Solana will break below its current consolidation range, resulting in a price drop. If this were to happen, we can expect support around $175. On the other hand, if the cryptocurrency manages to stay above this level, it could retest the resistance at $220.
The question now is what would you like to do with this information?
Source: ambcrypto.com
