At the beginning of 2024, Solana’s (SOL) price faced significant challenges in surpassing key resistance levels. In August, two different attempts were made to exceed the $160 level within 30 days due to the rise in the cryptocurrency market, but these were unsuccessful. Despite these difficulties, comments suggest a potential recovery as investor confidence in the upward trend increases. On the other hand, despite Solana’s small rise today, the possibility of falling to $126 continues to raise questions.
Solana Comments
Investors trading Solana (SOL) were generally preparing for a potential price drop as the funding rate turned from positive to negative on August 28. This sentiment shift indicated that investors expected a drop to the $126 level. Considering the recent consolidation in SOL, this situation brought significant concerns.
The consolidation range between $126 and $160 continues to be a notable area for traders. Many investors seem to be eyeing the short-term price movements in this range as opportunities.
On the other hand, the broader price outlook for Solana suggests that the challenging process may not be over. Technical indicators like the Relative Strength Index (RSI) suggest that the downtrend could be strengthening.
Looking back, the RSI value historically showed reversals from similar ranges, which could mean a decrease in sales in the future. A drop in sales could signal a price recovery in Solana, but it is essential to closely monitor market conditions.
Even if the RSI value for Solana falls into the oversold region, it does not guarantee a subsequent rise.
SOL Price Prediction: Another Day, Another Jump
After failing to surpass the resistance level at the $160 region, Solana’s price dropped by more than 20% over the last eight days. This significant drop suggests that Solana might fall back to $126 before experiencing a substantial price increase.
Historically, significant bounce foundations were established around the $126 region. However, the recent failure to surpass the $160 level suggests that the drop could be more severe this time.
Since mid-April, there have been numerous upward and downward movements between the $126 and $160 levels. While there are comments suggesting that this range could break, it may not be possible without a significant movement in the broader market, especially from Bitcoin.
Even if there is a recovery on the Solana side, a new drop could start if the $155 or $160 resistance levels are not surpassed, potentially falling back to the $126 level.
Additionally, if the market recovers and SOL rises, a scenario where the $160 resistance is surpassed could occur. Such a breakout could pave the way for Solana to rise towards $169.
