Recent analyses suggest that Solana's price may encounter additional downward pressure. Crypto analyst MadWhale has indicated that Solana is at risk of declining to $125 as it approaches a critical support level.
In a detailed TradingView analysis, MadWhale highlighted concerns that Solana could descend to $125, contingent upon its retest of the $164 support level. This level has historically provided robust support, yet the analyst warns it might not sustain this time.
MadWhale noted signs pointing towards Solana breaching this support, potentially triggering a 25% price decrease. Should this occur, the price target to monitor is $125, aligning with a significant monthly support zone. This zone has previously acted as a strong defense against further declines, marking a pivotal point in the current market outlook.
The analyst's accompanying chart illustrated that a break below the $125 support might see Solana plummet to $80. Additionally, another analyst, PizzaDriver, has warned of a possible crash similar to 2022's, where Solana could fall to double digits.
Solana has already suffered a sharp downturn, losing over 11% in the past week. On-chain analytics firm Santiment reported that Solana's market sentiment has reached its lowest since the substantial retracement on January 20th, with traders voicing frustration as the price hit a three-month low of $161.
However, Santiment did offer a note of optimism, suggesting that high discussion rates and bearish crowd sentiment could historically signal a forthcoming bounce.
In contrast to predictions of further declines, some analysts foresee a potential recovery for Solana. Crypto analyst Mr B, in a recent X post, observed that Solana has shown signs of recovery following a dip to approximately $160. He highlighted that Solana rebounded effectively from a daily support level.
Mr B anticipates a rebound to $185, though he cautioned that failure to surpass this level might lead to another drop. Conversely, if Solana climbs higher, the analyst predicts that the psychological $200 barrier could soon be in reach.
As of this writing, Solana is trading at around $172, marking a rise of over 3% in the last 24 hours, according to CoinMarketCap data.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
