Crypto Analyst Predicts Solana Price Drop

Crypto analyst MadWhale has suggested that the Solana price could face additional downward pressure in the coming days, predicting a decline to $125 as it retests a key support level.

Solana At Risk Of A Drop To $125 With Support Retest

In a TradingView post, MadWhale indicated that Solana (SOL) is at risk of dropping to $125 during the retest of the $164 price level, identified as a vital support level. This support has shown strength in the past but may not hold in the future.

MadWhale pointed out signals indicating that the price might breach this daily support, potentially resulting in a decline of about 25%. If this occurs, the $125 target aligns with a critical monthly support zone, historically a crucial defense against further downturns.

According to MadWhale’s chart, falling below the $125 support could lead Solana’s price down to as low as $80. Additionally, fellow analyst PizzaDriver warned that SOL could experience a crash reminiscent of 2022, potentially dropping into double digits.

Over the past week, Solana’s price has already declined over 11%, reaching a 3-month low of $161. Analytics platform Santiment noted that market sentiment for Solana has dropped to its lowest since a major retracement on January 20th. Traders have expressed frustration over the declining price.

Despite these warnings, Santiment also mentioned an optimistic outlook, stating that while discussions around SOL are high and crowd sentiment is bearish, this historically indicates a strong chance for a bounce back.

A Rebound Is Also On The Cards

While analysts like MadWhale and PizzaDriver predict further declines, some analysts believe SOL may recover. Crypto analyst Mr B noted that SOL is slowly improving after a drop to around $160, having bounced off a daily support level.

Mr B expects a healthy rebound to $185; however, he cautions that if Solana does not surpass this level, it could drop again. Conversely, if the price rises sufficiently, he predicts the psychological level of $200 could soon be reached.

As of writing, Solana is trading at approximately $172, reflecting a more than 3% increase in the last 24 hours, according to CoinMarketCap.

Featured image from Adobe Stock, chart from Tradingview.com