Will Solana Price Kickstart Rally to $400 or Crash Lower?

Solana price a layer one crypto has witnessed a decrease recently, mirroring bearish trends across the crypto market. After November’s bullish rally broke critical resistance levels, the token entered a corrective phase. Crypto experts remain optimistic, predicting a potential rally toward $400. However, BTC price trading below $96k has heightened market concerns of extending the ongoing crash. The critical question arises: will Solana’s price drop further, or is a bullish breakout on the horizon? 

Is Solana Price Primed for a $400 Surge or a Deeper Correction?

Solana price has struggled recently, failing to enter price discovery after its record high of $263 in November. Over the past 30 days, the cryptocurrency has displayed a clear downtrend, marked by lower highs and lower lows. While this 15% dip is significant, crypto analysts still believe that SOL still has a lot more potential for long term gains.

Currently hovering around the critical $175 support level, Solana’s technical indicators suggest a possible rebound in the near future. Some experts view this pullback as a buying opportunity, especially with weak sentiment dominating the broader cryptocurrency market. Investors are now questioning whether Solana’s stabilization at this level signals a chance to go long, despite the recent challenges and market-wide uncertainty.

Crypto analyst Captain Faibik has identified a promising breakout pattern in Solana price on its weekly chart. According to his analysis, SOL has emerged from a bullish pennant formation and is retesting critical support levels.

The analyst with this technical move proposes that investors buy the dip and hold SOL for $400. The recommendation also reaffirms strong belief that Solana will continue rising in the cryptocurrency market.

SOL Price Analysis

The latest SOL price is hovering at $185, making a slight decrease of 0.3% over the past 24-hours. The broader cryptocurrency market has continued to exhibit bearish tendencies, with Bitcoin (BTC) trading below $95,000. Most top altcoins have similarly recorded losses as the Christmas season approaches, further dampening investor sentiment.

If the bearish trend gain more presure, the Solana price prediction could break below the strong support level of $180.  A further drop may lead to $170 support level and possibly lower levels, signaling intensified selling pressure among market participants.

However, if buyers regain control, the price could climb above $200, potentially revisiting the the ATH of $263 mark seen on Nov 23, 2024. This would align with previous significant resistance levels, paving the way for a possible rally toward $400, as per analyst.

On the 4-hour Technical charts for SOL price shows a signs of recovery The histogram turning green on the MACD inidcators. The MACD line’s upward movement above the signal line indicates a gradual shift toward bullish momentum. 

The Solana’s price faces a critical juncture. A bullish rebound could trigger a rally toward $400, while failure to hold support might deepen the correction. Investors await decisive market signals.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.