As the price of Solana’s native SOL token continues to decline to a 45-day low, a crypto analyst has made a bold prediction. Despite the current bearish trend, the analyst foresees Solana’s native token crossing the $1,000 mark in the future.
At the time of writing, Solana is trading at $128, having experienced a 15% drop in value over the past week amidst a broader cryptocurrency market downturn. Technical analysis of the cryptocurrency’s yearly price chart reveals that its 50-simple moving average is hovering around $149, while the 200 SMA is at $100.9.
While Solana’s price is currently below its 50 SMA but above the 200 SMA, indicating a short-term bearish sentiment within a long-term bullish trend, the Relative Strength Index (RSI) for SOL is at 32, signaling an oversold condition. Additionally, the Moving Average Convergence Divergence (MACD) indicator’s line has crossed below its signal line, signaling further bearish momentum.
The MACD histogram suggests that there is ongoing bearish momentum for Solana as it nears its support level near the 200 SMA. Another support level is seen at around $122, which was recently tested and resulted in a bounce-back in price.
In terms of resistance levels, Solana faces a challenge at the 50 SMA, around $149. A breakout above this level could potentially pave the way for Solana to resume its bullish trend.
Looking ahead, a pseudonymous crypto analyst, Crypto Patel, has shared a long-term SOL price chart on social media proposing a ‘Roadmap to $1,000’ for Solana. The chart depicts the formation of a significant cup and handle pattern, a bullish signal in technical analysis.
The cup and handle pattern typically signifies a period of downward movement followed by a recovery forming a “u” shape, before a slight downward drift creates the handle. This pattern is often seen as an indication of a potential bullish trend.
In conclusion, while Solana’s price may be facing challenges in the short term, the long-term outlook and technical indicators suggest potential for a significant upside, with the $1,000 mark within reach. Keep an eye on key support and resistance levels for further insights into Solana’s price movements.
