Despite Solana (SOL) losing 12% of its value in the last seven days, crypto analyst Crypto Kaleo says SOL could fall even lower to $120. If that happens, it could set the stage for a stronger rally, allowing Solana to consolidate before targeting new highs.
This analysis will assess the likelihood of the projected drop to $120 and how that may impact Solana’s future trajectory.
Solana continues to lose momentum
Kaleo first shared his opinion on August 27, predicting a price drop for Solana (SOL). Three days later, SOL dropped to $130, and the analyst reiterated his position, suggesting it could go lower. He mentioned the same thing today, as the cryptocurrency has lost almost 5% in the last 24 hours.
Solana’s all-time high (ATH) of $260 was reached in November 2021, and the token hit $200 earlier this year, sparking speculation about a new ATH. However, that hasn’t happened yet.
On the weekly chart, SOL appears to be following a familiar pattern similar to the drop from $204 to $78 in March 2022. While the price may not fall that low, it will likely fall to $120 or perhaps even $110.
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On the daily chart, SOL is trading below both the 20-day and 50-day exponential moving averages (EMA). The EMA helps determine the direction of the trend, and when the cryptocurrency price is below these levels, it signals a bearish trend.
Conversely, when the price is above the EMA, the trend is considered bullish. As long as SOL remains below these key thresholds, the token is at risk of continuing to fall.
SOL Price Forecast: Kaleo May Be Right
A closer look at the daily chart shows that the bulls are trying to defend the support at $128.37. If successful, the next price target for SOL could be around $137.43, which is a critical resistance level for the token.
Failure to overcome this resistance could see SOL price fall to $127.97, where it could consolidate for some time. During this period, market participants could continue selling, which could result in the $120 price prediction coming true. In a more bearish scenario, SOL could fall to $110.
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However, reaching this level could trigger a strong rally, potentially pushing the token to $174.11. If this rally occurs, Solana could approach a new all-time high later this year or early 2025.
