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Despite Solana (SOL) losing 12% of its value in the last seven days, crypto analyst Crypto Kaleo says that SOL’s price could drop further to $120. If this happens, it may set the stage for a stronger upswing, allowing Solana to consolidate before aiming for new highs.
This analysis will assess whether the prediction of a drop to $120 is likely and how it could impact Solana’s future trajectory.
Solana Keeps Losing Steam
Kaleo first shared his opinion on August 27, predicting a price drop for Solana (SOL). Three days later, SOL fell to $130, and the analyst reaffirmed his stance, suggesting it could go lower. Today, he mentioned the same as crypto lose nearly 5% in the last 24 hours.
Solana’s all-time high (ATH) of $260 occurred in November 2021, and earlier this year, the token hit $200, sparking speculation of a new ATH. However, this has yet to materialize.
On the weekly chart, SOL seems to be following a familiar pattern, similar to its decline from $204 to $78 in March 2022. While the price may not fall that low, it is likely to drop to $120 or potentially as low as $110.
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On the daily chart, SOL is trading below both the 20-day and 50-day Exponential Moving Averages (EMAs). The EMA helps indicate trend direction, and when a cryptocurrency’s price is below these levels, it signals a bearish trend.
Conversely, when the price is above the EMAs, the trend is considered bullish. As long as SOL remains below these key thresholds, the token risks further decline.
SOL Price Prediction: Kaleo Could Be Right
A closer look at the daily chart reveals that bulls are attempting to defend support at $128.37. If successful, the next price target for SOL could be around $137.43, a crucial resistance level for the token.
Failure to break above this resistance may cause SOL’s price to drop to $127.97, where it could consolidate for a while. During this period, market participants may continue selling, which could lead to the $120 price prediction coming true. In a more bearish scenario, SOL could fall to $110.
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However, reaching this level might trigger a strong rally, potentially pushing the token to $174.11. If this rally occurs, Solana could approach a new all-time high later this year or in early 2025.