- Solana (SOL) may drop to $120, setting up a potential bullish rally, according to analyst Crypto Kaleo.
- Despite recent losses, this dip could pave the way for a significant price surge, possibly reaching new all-time highs later this year or early 2025.‘
Solana’s (SOL) price is under intense scrutiny as it experiences a significant downturn. Renowned crypto analyst Crypto Kaleo predicts that SOL might dip to $120, potentially setting the stage for a bullish rally. Despite recent losses, this prediction offers a glimmer of hope for Solana investors eyeing future gains.
Current Market Performance and Key Levels
In the last week, Solana has shed 12% of its value, raising concerns among traders and investors. According to Crypto Kaleo, the decline isn’t over yet. He first shared his bearish outlook on August 27, forecasting a drop to $120. Three days later, SOL fell to $130, reinforcing his stance. As of today, Solana has lost nearly 5% in the last 24 hours.
Solana reached its all-time high (ATH) of $260 in November 2021 and flirted with the $200 mark earlier this year, stirring speculation about a new ATH. However, these expectations have yet to materialize. On the weekly chart, SOL’s price action resembles its previous decline from $204 to $78 in March 2022. Although a similar drop to such lows seems unlikely, a dip to $120—or even $110 in a worst-case scenario—is plausible.
Technical Analysis: Indicators and Support Levels
Examining the daily chart, SOL is trading below the 20-day and 50-day Exponential Moving Averages (EMAs), indicating a bearish trend. These EMAs are crucial for trend analysis: prices below the EMAs signal a downtrend, while prices above suggest an uptrend. As long as SOL remains below these key levels, further declines are likely.
Currently, bulls are striving to defend the $128 support level. Should they succeed, SOL could target the next resistance at $137.43. Breaking this resistance is essential for a potential upward movement. However, failure to do so might see SOL’s price fall to $127.97, leading to a consolidation phase. During this period, continued selling could push SOL to the predicted $120 mark. In a more bearish scenario, the price might even drop to $110.
Potential for a Bullish Reversal
Despite the bearish outlook, reaching the $120 level could ignite a strong rally. This rally could potentially drive SOL’s price up to $174.11, setting the stage for a new all-time high, possibly by late this year or early 2025.
While Solana faces immediate bearish pressures, the predicted drop to $120 might pave the way for a significant bullish reversal, offering a promising outlook for long-term investors.
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