Solana's price faces bearish pressure amid economic shifts. Explore how external factors like market volatility, regulatory changes, and inflation impact SOL's trends.
Solana is in a rough spot right now. Top crypto analyst Alan Santana has pointed out some serious bearish signals, and his prediction? SOL could drop all the way down to $80. If you’re like me, you’re probably wondering what’s causing all this and if there’s any hope for a turnaround.
So here’s the deal: before this current downturn, Solana was riding high—peaking at around $210. But things changed fast after that. Santana breaks it down with some solid technical analysis, showing how a series of breakdowns have led to a shift in market sentiment from bullish to bearish.
One of the key indicators he points out is something he calls “the third breakdown.” This is where the price forms what’s known as a lower high, which is basically a big red flag that further declines are likely on the horizon.
But it’s not just about the charts. There are a ton of external economic factors influencing Solana's price trajectory right now. For one, we’ve got macroeconomic conditions like interest rates and inflation. If central banks start hiking rates aggressively, riskier assets—including cryptocurrencies—tend to take a hit.
Then there are regulatory issues. One piece of good news or bad news can swing investor sentiment dramatically. Just look at how recent actions by the SEC have put pressure on many crypto projects.
Geopolitical events also play their part; sometimes they make cryptocurrencies more appealing as alternative assets or hedges against traditional economic risks.
So where does this leave us? According to Santana, there are Fibonacci retracement levels that suggest possible support at $80 and even lower at $60. He believes these levels could act as stopping points for SOL as it continues its downward journey.
In short, if you're holding SOL right now, you might want to prepare yourself for further declines based on both technical indicators and external economic factors. It might be a while before we see any signs of recovery on those charts.
