Crypto analyst Alan Santana suggests that Solana may face a 20% price drop, bringing its value back to levels seen in early August. Despite Solana’s impressive performance this year, the fifth-largest cryptocurrency by market cap could see a pullback after a period of steady growth.
Solana’s Mixed Performance
Solana (SOL) has experienced a mixed week in terms of price movement. As of now, SOL is up 3% in the last 24 hours but down 7% over the past week. After reaching a high of $160.91 on September 29, SOL has dropped 10% and suffered four consecutive days of losses before a slight recovery. Despite the overall decline, SOL has risen by 527% since October 5, 2023, according to CoinMarketCap.
Will Solana Crash?
Alan Santana, in his analysis on TradingView, points out that Solana’s price has followed a consistent pattern since March. Each price rally for Solana typically lasts 20 to 30 days, followed by a correction that spans 7 to 14 days.
He highlights that during the last major correction in July, Solana fell from $193 on July 29 to $111 by August 5. Based on this historical pattern, Santana believes Solana could drop to $121, representing a 20% decline from its current price of $144.
Could Santana’s Prediction Be Invalidated?
However, recent price movements could challenge Santana’s prediction. Solana recorded a 4.67% gain on Friday, showing a bullish reversal in its daily chart. In contrast to the previous July drop, Solana’s recent price action may signal that Santana’s forecast could be invalidated.
Additionally, increased on-chain activity within Solana’s decentralized finance (DeFi) ecosystem is fueling bullish sentiment. Some analysts now expect SOL to rise toward a resistance level of $186, further undermining predictions of a significant drop.