Solana Price Prediction: Is SOL Set for Another Bearish Move?

Summary:

Solana's price is up by almost two per cent in today’s trading session. The surge in prices comes after two consecutive bearish sessions.

Solana’s price is up by almost two per cent in today’s trading session. The surge in prices comes after two consecutive bearish sessions that saw prices drop by 11 per cent.

Today’s rise in price mirrors the global cryptocurrency industry, which was on an aggressive push to the downside in yesterday’s session, resulting in it falling below the $1 trillion market capitalization. Today, the industry is also up by almost two per cent, and it looks likely to continue going up throughout the session.

With the cryptocurrency industry currently struggling, there is a high likelihood that we may see Solana continue to drop, despite today’s price gains. Part of the reason for this is that Solana is positively correlated with the industry’s general trend. Therefore, when it struggles, Solana prices are also dragged downwards.

Solan Price Prediction

Solana set the monthly price high of $47.67 on July 19. Since then, the prices have been in a long-term bearish trend, which has resulted in the cryptocurrency losing 26 per cent of its value. Today, the trading session opened with prices trading at $36.2. Since then, the prices are up by 1.5 per cent and currently trading at $36.8.

Looking at the chart below, today’s price gain is a reversal of the past few trading sessions that have been aggressively bearish. However, the chart also shows today’s price gains to be a retracement rather than a price reversal.

Therefore, my Solana price prediction expects the prices to resume the long-term bearish trend within the next few trading sessions. We will likely see prices trading below July’s price low of $31 in the next few trading sessions. My analysis is informed by previous price action movements that have resulted in a strong push to the downside each time the crypto had a strong session that resulted in a price surge.

However, my analysis will be invalidated if the price hits this week’s high of $41. It will also mean a possible price reversal to the upside. In that case, the $43 resistance level will likely be hit.