Solana Enters Bearish Market, Time to Invest Now

Last Updated on July 4, 2024 by SPN Editor

For crypto investors, timing is everything. The allure of buying coins at a discount during bearish market conditions is irresistible. Enter Solana (SOL), a popular decentralized finance (DeFi) asset that has been making waves. But is it time to dive in, or should investors tread cautiously?

The Bearish Market

Solana recently missed the $155 mark, and its technical indicators are flashing the bearish market. According to crypto trading expert Alan Santana, the crucial $100 support level is at risk. But what’s driving this downward momentum?

The ABC Correction Pattern

Solana is currently undergoing an ‘ABC’ correction pattern—a concept in technical analysis. Let’s break it down:

1. Part A: The chart moves higher and then drops.
2. Part B: A rebound occurs, but it makes a lower high.
3. Part C: The trend continues downward, sometimes holding the first low.

The Sub-ABC Wave

Experts analyze Solana’s chart and identify the top of wave ‘B’ for the last sub-ABC wave. This suggests that Solana could drop below $100. Interestingly, this aligns with Solana’s trading price in January 2024, indicating a possible return to the $80–$100 range.

The Surprise-Super-Down-Wave (SSD)

The magnitude of this potential price movement is significant—estimated to be between 40% and 50%. The expert labels it an SSD wave. Brace yourselves: Solana might head toward $80, a level it traded around in early 2024.

Trading Volume and Market Sentiment

A decrease in trading volume adds to the bearish outlook. If Santana’s analysis holds, Solana could plummet, losing its $100 support and potentially reaching $80—a 45% decline from its current price.

The Meme Coin Factor

Solana has defied market trends before, rallying due to meme coin activity. Despite trading in the red, Solana-based meme coins outperformed Ethereum-based counterparts by 800% in H1 2024.

The ETF Hype

As Solana buzzes around a possible exchange-traded fund (ETF), investors eye the $100 threshold. If SOL plunges below, it’s a chance for those who missed the rally. The bearish market will be perfect for investors who love this coin.

The Current Landscape

At press time, Solana sits at $143, facing resistance at $150. Weekly gains are positive, but attention remains on short-term movements. Losing the $140 support could spell further losses, while reclaiming $145 may signal an upside.

In the crypto seas, Solana navigates choppy waters. For investors, timing is key—whether to ride the waves or wait for calmer tides. As the sun sets on bearish markets, Solana’s fate hangs in the balance, waiting for the next tide to turn.

Disclaimer: This news feature is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a qualified financial professional before making investment decisions.