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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.