Solana is displaying strong signs of continued bullish momentum as it tried to reclaim the $200 resistance level.
But the bigger picture isn’t that clear, and crypto analyst Alan Santana has issued a cautionary note, suggesting that investors should prepare for potential decline.
Bears are coming?
Santana’s analysis mentiions a pretty big bearish signal for Solana, and this signal could means a deeper decline in the token’s price.
In a TradingView post Santana pointed out that the current price and volume patterns for Solana bear some similarity to those seen in July 2023. That’s not a good news.
In July 2023, Solana experienced over 45 days of steady price increases, as buyers flooded in, driving the price to new highs.
Fast forward to August 2024, and the scenario seems to have flipped. After enduring 140 days of bearish price action, Solana has now shown a strong bearish volume spike.
Santana thinks, this movement suggests the continuation of the current downtrend. If this bearish momentum remains, Solana could be heading towards as low as the $90 level.
Bulls will be back?
Despite the bearish signals, not everyone thinks Solana is doomed. Another analyst, known as Crypto Patel, has suggested that investors should also consider the possibility of a breakout.
In an X post Patel highlighted that Solana has been showing strong bullish momentum, with a potential all-time high of $500 on the horizon.
Patel pointed to Solana’s historical performance during past bull runs, where the token demonstrated pretty crazy gains from its support levels.
There is a robust support zone around $80, which has historically acted as a launching pad for bigger upward price movements.
Speculation everywhere
Solana’s immediate future now looks uncertain (or the analysts looks uncertain?), with conflicting signals of both bearish and bullish trends.
But the token’s historical patterns offer a basis for speculation. If the bearish trend highlighted by Santana continues, Solana could see a drop to $90.
On the other hand, if the bullish momentum suggested by Crypto Patel takes hold, Solana could be on the first phase of a serious rally, and maybe, but just maybe, a new all-time high.
