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Analyzing Trends: Potential 20% Decrease in Solana (SOL) Price on the Horizon

The price of Solana (SOL) has formed a short-term bearish structure and is showing decisive bearish signals. It is likely to decline further in the near future.

Daily Outlook

The price of Solana (SOL) has decreased since being rejected by the long-term resistance zone at $120 on December 26, 2023. The decline has created a short-term bearish structure (green zig-zag line), indicating that the bears have regained control and is selling aggressively at higher levels.

The daily RSI (Relative Strength Index) has formed a significant bearish divergence within the overbought zone and is currently crossing below 50. Both are bearish signals, indicating further downward pressure.

Therefore, the SOL price is likely to continue its decline towards the previous resistance zone at $78, which is 20.29% lower than the current price.

SOL/USDT daily chart . Source: TradingView

Short-Term Range

The 4-hour chart shows that the SOL price has formed a range between $86 and $106 since January 3, 2024. Both the support and resistance of the range have been tested twice, confirming the validity of the range.

Yesterday, the SOL price was rejected by the range’s resistance (red arrow) and is currently declining.

The 4-hour RSI has formed a bearish divergence and crossed below 50, supporting the continuation of the decline.

Therefore, the SOL price may decrease towards the range’s support at $86 in the coming days.

SOL/USDT 4-hourly chart . Source: TradingView

Conclusion

The most likely scenario suggests that the SOL price will continue to decline in the near future. The immediate target is $86, with a potential lower target at $78.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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