- Two market analysts are predicting a downturn in Solana’s price action
- AMBCrypto predicts a near-term decline to $120 or possibly lower for the price of SOL
Over the past 40 days, Solana has faced some significant challenges on the charts, with SOL falling 17.26%. This downward trajectory could accelerate as further insights supporting the decline emerge.
Notably, SOL can be expected to trade higher following this decline. Therefore, the latest decline could be the final catalyst for a big rise.
Crossroads for SOL, potential decline expected
According to Carl Runefelta leading market analyst, SOL is currently at a crucial juncture and could rise or fall in the coming days. According to his analysis, Solana is now trading within a descending triangle, a pattern that could have bullish or bearish outcomes depending on its formation.
Source: trading view
Runefelt even predicts a potential drop to $112.5 if bears dominate the market. On the contrary, he also supports the likelihood of a rise to $155 – just above the pattern’s peak – where significant liquidity is likely.
Analyst Kaleo also echoes this sentiment expect a sharper decline for SOL, targeting the $80 mark. This level has been identified as a key support area, one that is expected to attract enough liquidity to counter selling pressure and push prices higher.
Source: trading view
In his words,
“[SOL will reach a] new all-time highs.”
Kaleo had previously forecast $120 as a critical support zone to push the SOL to new highs. However, his focus shifted to the $80 level as market conditions evolved.
AMBCrypto also observed one trend on Coinglass where long traders, who expected a price increase for SOL, suffered losses. In fact, $8.99 million was lost in the last 24 hours as the market moved against their positions.
Additional, according to Hyblockthe cumulative delta of the liquidation level became negative with a value of -15. This indicated that short sellers have come to dominate the market.
Further analysis revealed a significant liquidity cluster at and below the $120 level, indicating that the price will trade lower in these liquidity areas. This could potentially clear out existing liquidity clusters before acting as a pivot point for upward price reversals.
Source: Hyblock
AMBCrypto then went a step further to monitor Open Interest to predict SOL’s next move.
Traders have invested in the fall of SOL
The Open Interest (OI), a metric that measures the total number of active contracts in a market to gauge liquidity and market sentiment, gave a bearish outlook for SOL.
At the time of writing, Open Interest had fallen 4.97% to $1.94 billion in just 24 hours. This drop suggested that traders were expecting a decline in SOL’s price, with the altcoin trading at $127.49.
If this bearish sentiment continues, SOL’s price could likely fall further from the above-mentioned level.