Solana (SOL) Analysis: Potential Price Drop to $120

Overview of Current Price Trends

In the latest altcoin analysis, crypto expert Crypto Kaleo suggests that Solana (SOL) is on a precarious path, indicating a probable price drop to $120 before any attempts at a new all-time high. With SOL losing 12% of its value within the last seven days, this development raises questions about the cryptocurrency's short-term future.

Historical Price Performance

Kaleo’s observation first emerged on August 27, as he predicted a downturn for Solana (SOL). A mere three days later, the price tumbled to $130. Given that SOL has since lost nearly 5% within the last 24 hours, the ongoing bearish trend remains concerning.

Market Analysis and Predictions

• The all-time high (ATH) for Solana stands at $260, reached in November 2021, when significant optimism was in the market.
• Recently, the token touched $200 earlier in the year but has struggled to build on that momentum.
• Current trends display a recognizable pattern likened to its decline from $204 to $78 seen in March 2022.

Support and Resistance Levels

Monitoring the daily chart reveals that SOL is currently trading below both the 20-day and 50-day Exponential Moving Averages (EMAs), indicating a prevailing bearish sentiment. Critical support is noted at $128.37, and if successfully defended, the next resistance target potentially lies at $137.43.

1. Failure to breach this resistance may push SOL towards $127.97.
2. Consequently, continued selling pressure could actualize the $120 price drop.
3. In dire cases, SOL could witness a plunge to $110, igniting sell-offs.

However, should the price indeed drop to $120, it may catalyze a significant rally, projecting the price towards levels near $174.11, and potentially setting the stage for a renewed all-time high later in 2025.