Solana, a prominent player in the cryptocurrency industry, has recently experienced significant market changes. In March 2024, Solana reached its all-time high along with Bitcoin. However, the market correction was confirmed in April 2024, as evidenced by the breakout of the support level and the formation of a “cap” pattern on the price chart.
Alan Santana, a well-known cryptocurrency analyst, reveal Several bearish indicators have emerged since Solana’s peak in March. The appearance of a shooting star candlestick pattern, an inverted hammer pattern, and a candlestick top all suggest a bearish trend.
Moreover, the weakness in the Moving Average Convergence Divergence (MACD) indicator, combined with falling highs and overall bearish activity in the market as a whole, has resulted in trading volumes decreasing with each passing session.
According to Santana’s analysis, Solana is on track for a 4X SHORT position with a potential gain of up to 222%. He recommends buying in between $165 and $143, with a price target of $130 to $64 if the bearish trend continues. However, it is important to note that this information is for illustrative purposes only and should not be considered as financial advice.
Challenges in Solana’s plummeting market
Solana has emerged as one of the most affected cryptocurrencies during the recent market turmoil. It soared to $202, but then encountered significant resistance that was further exacerbated by internal issues within the ecosystem. Network congestion and conflicts between the founders of his two Solana-based projects added to the confusion.
As a result, SOL has seen its value drop by a significant 16% over the past month. It is currently at $144, registering a slight increase of 0.80% in the past 24 hours. Additionally, the company’s daily trading volume decreased to $4.8 billion, dropping it from the top five cryptocurrencies by daily trading volume.
These setbacks raise concerns about the resilience and stability of SOL. Investors are closely examining its future trajectory amid ongoing challenges. As crypto markets continue to navigate volatility and internal disputes, it remains unclear whether Solana can regain its footing and restore investor confidence.
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