Solana’s Price Outlook: Analysts Weigh In
Solana’s (SOL) price concluded the year 2023 with an impressive nearly 1000% increase, driven by a rally that extended into the beginning of January. However, post this period, SOL experienced a decline, losing almost 30% of its value. The question arises: will SOL’s losses be limited to this?
Analysts suggest that significant decreases in SOL’s price could occur in the coming days. Despite a notable number of investors hoping for a recovery and taking a long position, SOL’s lackluster appearance has become prominent.
Analysts’ Commentary on Solana
According to cryptocurrency analyst Tryrex’s statement on January 22, the price could potentially retract to $71 in the coming days:
It may seem tempting to open a long position now and expect a bounce at this support level. However, the previous bounce was too weak to maintain the trend. I expect a drop to $71.
Analysts believe Solana’s current outlook and technical indicators do not look promising. Other analysts have also shared their thoughts on SOL’s next support levels and potential further decline.
When examining SOL’s past trend and price movement, the charts reflect that the parallel ascending channel has been broken recently. Based on this, LuxAlgo shared a post on January 23, stating that further declines could be expected in the future.
Looking at the daily Solana price charts (below), a downward movement is observed, ending below the critical support level of $85.10 as the candle closes. The next green line indicates the new support level pointed out by analyst Dootr.
According to the consensus of three analysts, SOL’s price could retract towards the next support level around $70. If the price does drop to this level, it could face a retest and potentially create new opportunities for investors to enter.
How Much is SOL Worth?
As of the time of writing, a downward trend was prevailing for SOL. In the last 24 hours, there was a decrease of 4.12%, which was 14% when looking at the rates of the past week. On a monthly review, the price of Solana had fallen by 15.21%, while it was trading just above $83.
Whether the current downward price movement of SOL will reverse soon and whether this cryptocurrency will have another notable year seems to be revealed in the upcoming period. Nevertheless, looking at analysts, an uptrend for SOL may not be very likely.