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Like Bitcoin and other top altcoins, Solana remains sold out at the time of writing, reversing the losses of the first part of the year. At the time of writing, SOL, the smart contract platform’s native currency, is trading around $130, once again testing a critical support level.
As it stands now, the third most valuable crypto asset is down nearly 40% from its 2024 high of around $210. Technically, the sellers are in control, and unless there is a sharp trend shift in favor of buyers, the short term will remain bearish.
Is SOL preparing for $100? Triple bottom shapes
While some analysts are optimistic and expect a recovery towards the $200 zone in the coming days and weeks, others are bearish. Let’s go to X, an analyst said SOL, in line with the current state of price action, believes the coin will fall to a low of $100.
This outlook follows the recent decline from a key resistance level, which was previously supported, around $140. With the coin changing hands at $130, the analyst is confident there will be more losses in a bear trend continuation pattern. According to his outlook, SOL will fall lower “if nothing changes” in the market.
The prediction, looking at the candlestick formation in the daily chart, is not surprising. As previously mentioned, the SOL is down nearly 40%% from its March highs.
With prizes consolidate And moving within a wide range of between $210 on the upside and $130 on the downside, this forecast is consistent with the recent price movement. Currently, SOL is retesting the multi-month support as a triple bottom form.
For the uptrend to print from October 2023 to March 2024, SOL must find support around spot rates. Subsequent gains above $140 and $160 could fuel demand, pushing the coin to $190 and eventually to $210 or a 2024 high.
Solana dumps, Bitcoin sell-off and Pump.fun liquidation impact sentiment
However, the lead will depend on a large number of factors. A recovery in Bitcoin prices would most likely send altcoins soaring, of which SOL is highly ranked. Additionally, the revival of meme coin activity on Solana will be a major price move.
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Lookonchain data shows that Pump.fun, a meme coin launch pad on Solana, has liquidated SOL. Because they are a large holder, their action is negative on balance, which impacts sentiment and helps cast doubt on the power of buyers.
As a SOL whale, the more they sell, the more retailers dump and follow in their path. As of September 3, the meme coin launch pad had sold over 264,000 SOL worth over $1.3 million.
Feature image from Shutterstock, chart from TradingView