End Of The Road For Solana? Analyst Anticipates 77% Price Crash To $40
In a surprising twist, a crypto analyst has predicted a significant price crash for Solana, despite its current bullish momentum. This analyst offers a fresh perspective on the popular cryptocurrency.
According to the trader known as AlanSantana on TradingView, Solana’s trading volume over the past two months indicates a potential crash. The decrease in trading volume is often an indicator of a bearish outlook and suggests a forthcoming downward price movement. This implies that demand for Solana may be tapering off.
AlanSantana also compares the current trading activity to the same period last year, noting that Solana’s volume was on the rise then. This increase in trading volume led to a bullish rally that continued into the first quarter of this year, pushing Solana to significant highs by March.
Based on the difference in trading volume between the two periods and the current decline, the analyst suggests a higher likelihood of Solana moving in a bearish direction. Consequently, he highlights the possibility of a price crash below $50. Interestingly, such a crash would nullify the gains made in the past year and bring the cryptocurrency back to its price range in November 2023.
Despite AlanSantana’s observation of declining trading volume, Solana remains predominantly bullish. Recent on-chain data from Lookonchain, an on-chain tracking firm, reveals that crypto whales continue to engage in Solana trading activity. Examples include large withdrawals of SOL tokens from exchanges for staking purposes.
While the current accumulation and momentum for Solana are bullish, a crash towards $40 appears unlikely at the moment. As of now, Solana is trading at $178, showing an 8% increase in seven days.
Featured image created with Dall.E, chart from Tradingview.com