Crypto analyst Alan Santana predicts that Solana might correct 20% to trade at a price mark last seen in early August.
Despite Solana’s recent patchy run, the fifth-largest crypto asset by market cap has blossomed in the past year. Per CoinMarketCap, SOL is up 527% from its price on October 5, 2023.
Notably, Solana is up 3% in the past 24 hours but down 7% in the past seven days. The “Ethereum Killer” is down 10% from its $160.91 weekly high, attained on September 29. Notably, SOL dropped on four consecutive days before a slight pullback yesterday.
Amidst the reserved price uptrend, analyst Alan Santana expects Solana to correct further. In a TradingView analysis, the speculator noted that SOL could drop another 20% to trade at a two-month low of $121.
Impending Solana Crash?
Santana cited a notable price behavior in the SOLUSD chart since March as a possible indicator of the continued downtrend. According to analogy, each Solana pump lasts between 20 and 30 days, while a price dump happens between 7 and 14 days.
The market analyst stated that the last major SOL capitulation lasted for eight days, with the asset consolidating for 55 days from then. For context, Solana dropped from a price high of $193 on July 29 to a low of $111 on August 5 before consolidating to the $161 high seen on September 29.
Furthermore, Santana noted that Solana has resumed another phase of a price downtrend, which might take it to $121. At the current market price of $144, the drop to $121 would translate to a 20% downtrend.
Price Prediction Invalidated?
Meanwhile, Solana closed strong on Friday after recording a 4.67% gain. Compared to the last price capitulation, SOL’s bullish engulfing on the 1D chart may have invalidated Santana’s price prediction.
During the July 29 to August 5 crash, SOL closed bearish on all eight days, as bearish momentum glared on its price movement. Notably, a bullish close today may invalidate Santana’s $121 price speculation.
Moreover, surging on-chain activities on the Solana network have been tipped to push SOL to the next crucial resistance at $186. Per the report, decentralized finance (DeFi) protocols in the Solana ecosystem have seen notable on-chain traction, spreading bullish sentiments around the blockchain.
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