Expectations that Solana price would rise above $200 have been widespread in the recent rally. In some cases, predictions for the cryptocurrency went as high as $1,000, but one crypto analyst is going in the opposite direction. In a recent analysis, Alan Santana has predicted a crash in SOL price that could wipe out all the gains made in the past week.
Solana shows similar patterns as 2023
In the analysis, crypto analyst Alan Santana points out that the Solana cryptocurrency shows similarities to a trend that was already observed in 2023. Last year, the trend was associated with an increase in the altcoin’s trading volume, which marked the beginning of an uptrend. However, this time, there is more of a downward trend in volume, which could indicate the beginning of a downtrend for the digital asset.
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Back in July 2023, Solana saw a significant increase in buying volume, which reached its highest level at that time. As the analyst points out, this strong buying volume started after around 45 days of bullish price action for the altcoin. The result was a continuation of the bullish rally, which eventually reached as high as $209 less than a year later.
Applying this trend to the current one could help identify where the Solana price might go next. This time, there was a significant increase in the selling volume of SOL. This happened after 140 days of continuous bearish trend in the SOL price.
If we use the result of the 2023 trend here, we would say that the Solana price could be heading for another crash. Given the current selling volume, which is the highest in over a year, the resulting crash is expected to be quite significant.
How low will the SOL price go?
As bearish selling pressure on Solana price increases, it poses a threat to SOL’s triple-digit status. In his chart, Alan Santana points out several levels that he sees SOL price falling to, and both are below the $100 mark.
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The first of the two targets is around $90, which represents a price drop of about 40% from current levels. The second target is below $60, which represents a price drop of over 50%. Moreover, a drop to this level would mark a new yearly high, as the SOL price has not been below $60 since November 2023.
Featured image created with Dall.E, chart from Tradingview.com
