Recently, Crypto Tony, a cryptocurrency expert, shared an intriguing forecast for Solana, a major player in the digital currency market. According to his analysis, Solana’s value against the US dollar could see a notable increase, potentially reaching as high as $144 in the coming weeks. This projection is rooted in the current market dynamics and the coin’s recent performance.
However, Tony also cautions investors about a key threshold that should not be breached to maintain the validity of this bullish scenario. He points out that if Solana’s value dips below the recent low of $85, it could signal a shift in the market sentiment and invalidate the anticipated upward trend.
As of this writing, SOL is trading at $93.35, a decrease of over 7 percent in the past 24 hours. Since failing to break past the resistance at $108 during the early hours of yesterday’s session, SOL has been trending downwards, creating a bearish pattern. However, the negative outlook has not been observed in SOL’s market only as the broader market turns red.
SOL has created immediate support at the $98 mark, making it the second time SOL dropped below $100 this week following the recent market dip observed a few days ago. If the bearish persists, SOL could retest the $90 level for a key support level to avoid further losses. However, a break below this level could lead to a test at $85, which could correct SOL’s uptrend pattern.
The decrease has not only been observed in the price but also in the market capitalization and daily trading volume, which dropped. The daily trading volume has decreased to $2,700,923,814 billion, while the market cap decreased to $40,107,348,385 billion.
Technical indicators hint at a negative outlook, as most of the indicators display a bearish bias. Indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are trending to the south, supporting the current downtrend. The RSI has dropped to the neutral level at 53.44 and continue to drop further if the trend doesn’t reverse.
The MACD indicator progression is dropping below the signal line, indicating a lack of buying pressure in the market. The red bars rule the histogram and continue to increase in size below the zero line. Moreover, the 20-day Simple Moving Average (SMA) is above SOL’s price at 99.15, indicating a sell signal. As SOL continues to dip further, the $85 level must be watched closely since it could shift the bullish sentiment, which could rally toward the $140 mark.
