While the cryptocurrency industry continues to suffer from the aftershocks of the FTX collapse, some digital assets are outperforming others, including Solana (SOL), which has been following a downward trajectory after being heavily hit by the crypto exchange’s collapse.
Solana indicators point to $5?
Specifically, Solana has been following a stable bearish chart pattern for much of the past week and looks “overly ugly in the short/medium term” especially if it loses the critical area on the crypto-specified High Time Frame (HFT) charts.
According to the pseudo-expert, the likely scenario for Solana in this situation is that he will “probably fill the gap and have $5 next.” Meanwhile, Solana was trading at $11.99 at press time, making the forecast particularly bearish.
Solana price action analysis. Source: Altcoin Sherpa
In fact, the only chance to miss Solana at this point is to break the bearish trading pattern to the upside. “If you see a breakout followed by a retracement of the lower swing,” as altcoin Sherpa believes and is shown in the analyst’s report.
Solana price action analysis. Source: Altcoin Sherpa
Solana price continues to fall
Solana was hit hard after the crypto exchange FTX exploded, and its founder, Sam Bankman-Fried, was arrested for alleged fraud, considering SOL enjoyed an enormous amount of support from FTX’s former CEO.
The most dramatic drop in recent months for Solana occurred in early November, when the price of SOL dropped from $37.02 on November 5 to $13.49 on November 9, dropping 63.56% in just four days. Since then, it has continued to decline, albeit at a slower and more sideways fashion, currently holding support at $10.43.
At press time, Solana was changing hands at $11.19, down 1.20% from the previous 24 hours, adding 9.37% losses over the week and up to 21.42% drops on its monthly chart, according to data received by Finbold.
Solana 7 day price chart. Source: Finbold
At the same time, the machine learning algorithm at PricePredictions predicted little change for the decentralized finance (DeFi) token, setting the price of Solana at $11.19 for January 1, 2023. As for its long-term forecast, it drops further with a forecast of $11.05 for SOL on Jan. 27.
Solana 30-day price forecast. Source: Price Estimates
These predictions may indeed come true if there are no triggers to change the trend and push the price of Solana upwards, such as positive developments around the token, as well as a more positive atmosphere in the crypto market and global macroeconomic landscape.
Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.
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