Solana (SOL) Price Could Drop to $100, Analyst Warns

Fibonacci Levels Signal Bearish Outlook

One of the key indicators Santana uses in his analysis is the Fibonacci retracement levels. These levels help traders identify potential support and resistance points during market corrections. According to Santana, Solana’s price is nearing critical Fibonacci levels that could play a pivotal role in determining the cryptocurrency’s future movement.

He highlights two significant retracement levels:

• 0.618 level around $100, which could act as a strong support zone.
• 0.786 level around $65, representing a deeper correction level that might come into play if bearish momentum continues.

Santana’s chart shows a red arrow pointing towards lower price ranges, indicating that the price may continue its downward trajectory. He emphasizes that without a significant shift in market momentum, Solana could soon test these lower support levels.

Declining Volume Hints at Bearish Control

Santana’s analysis also draws attention to concerning changes in trading volume, which signal potential bearish dominance. Earlier in the year, Solana saw strong bullish momentum with large green candles and high buy-side volume, indicating optimism in the market.

However, recent trading sessions have shown a stark contrast:

• Smaller price candles suggest weakening upward pressure.
• Increasing red volume bars signal a rise in sell-offs and bearish sentiment.
• High red volume indicates that large market players might be exiting their positions in SOL.

This shift in volume is concerning for Solana, as it suggests that the bears are gaining control of the market. Santana notes that even though Bitcoin has shown signs of strength recently, Solana has not responded positively, further indicating bearish pressure in the altcoin market.

Absence of Bullish Volume Raises Concerns

Another crucial point raised by Santana is the absence of bullish volume in Solana’s recent price action. For any meaningful price recovery to occur, Santana argues that strong buy-side volume is essential. Without this, Solana may remain vulnerable to further declines.

The current market appears to be in a correction phase, and the lack of green volume—indicating buying interest—is a red flag for potential investors. Santana advises caution, explaining that until a strong green candle forms with substantial volume, investors should be wary of entering long positions in Solana.

This lack of bullish volume could keep Solana in a precarious position, leaving the price susceptible to more downward pressure in the near term.

Key Support Levels to Watch

Santana’s analysis outlines two important support levels based on Fibonacci retracement levels:

• $100: The 0.618 Fibonacci retracement level could serve as a significant support zone, where buyers may step in to prevent further decline. This level is critical as it represents a common retracement point during market corrections.
• $65: The 0.786 Fibonacci level could come into play if the bearish trend intensifies. While this is a more extreme scenario, it is still within the realm of possibility, especially if the broader market sentiment continues to weaken.

Santana warns that if Solana falls to these levels, investors could face substantial losses if they fail to manage their risk appropriately. He advises traders to remain cautious and monitor market conditions closely for signs of a reversal.

Risk Management and Investor Caution

With the potential for Solana to drop to $100 or even $65, Santana stresses the importance of proper risk management for investors. Given the bearish signals in the charts and the absence of bullish volume, he believes that it is crucial for traders to avoid overexposing themselves to further downside risk.

Key risk management strategies include:

• Setting stop-loss orders to limit potential losses.
• Avoiding heavy leverage in volatile market conditions.
• Monitoring key support and resistance levels for potential entry and exit points.

Santana also emphasizes that despite Bitcoin’s recent positive performance, Solana and other altcoins have not yet followed suit. This divergence suggests that altcoins like SOL may still be under significant bearish pressure, making it essential for traders to remain vigilant.

Conclusion: Bearish Sentiment Prevails for Solana

In conclusion, Alan Santana’s analysis paints a bearish picture for Solana in the near term. With Fibonacci retracement levels indicating potential support zones around $100 and $65, and declining volume patterns signaling increasing sell-offs, Santana believes that Solana could be heading for a further price correction. The absence of bullish volume only reinforces the notion that Solana may struggle to reverse its downward trend unless market conditions change.

Investors should proceed with caution, especially if Solana approaches these key support levels. Risk management will be crucial to navigating the potential downside and avoiding significant losses during this period of uncertainty. While the broader cryptocurrency market may still hold promise, Santana’s analysis suggests that Solana could face more bearish pressure before any significant recovery occurs.