Solana Slides 13% – Can It Recover Despite Analyst’s $1,000 Prediction?

Christian Encila

11 months ago

3 mins read

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Solana (SOL) has had an upward trend in the cryptocurrency market because of the recent volatility. Following a remarkable surge earlier in 2024, SOL saw a significant decline of 13% in the past week, causing investors to speculate about future developments.

Technical expert Patel took a close look on coin’s weekly performance, and discovers a classic “Cup and Handle” pattern, a bullish indication akin to, well, a cup and its handle.

Frothy Past, Steady Handle: A Recipe For A Breakout?

Patel claims that the “cup” component of the trend extends from mid-2021 to mid-2022 and covers Solana’s strong climb and eventual drop. The current consolidation phase forms the “handle,” following the first parabolic movement in price.

For SOL bulls, the key hurdle lies in surpassing the resistance zone around $200-$225, a level that has historically acted as a psychological barrier. A successful breach of this resistance could be the first sip of a bullish resurgence.

#SOLANA $1000 Roadmap 🚀$SOL pic.twitter.com/s7KipEbDTd

— Crypto Patel (@CryptoPatel) June 22, 2024

$520 Or $1,042: Patel’s Ambitious Price Targets

Two potential medium- to long-term price targets for SOL are indicated in Patel’s analysis, both of which rise above the present resistance. The first goal, or TP1, would indicate a significant increase and retest previous highs at $520.

Patel doesn’t stop there, though. With a startling $1,042 price tag, his second objective, TP2, draws attention and suggests an extraordinarily bullish long-term outlook. But getting to these great altitudes depends on finishing the handle creation completely.

This would entail an additional period of consolidation as well as a possible retreat, which would be a necessary evil to build up steam for a strong breakout.

Solana market cap currently at $58 billion. Chart: TradingView.com

Can SOL Weather The Short-Term Squall?

Although Patel’s study presents a positive long-term outlook, the short-term outlook for SOL is a little more uncertain. Given that Solana is currently trading below its 100-day Simple Moving Average (SMA), the indications of the market point to a negative undercurrent. Bearish sentiment is further reinforced by the Relative Strength Index (RSI), which is trading below 50% and verging on oversold territory.

In the foreseeable future, SOL may experience a temporary decrease; several experts anticipate a drop as low as $99 or in proximity to the $118 support threshold. Nevertheless, it is not feasible to completely eliminate the possibility of a reversal. It is not possible to totally rule out the chance of a reversal, though. SOL may surpass the resistance level at $140 and advance towards $160 and $188 if the market recovers..

Investors are able to traverse the turbulent cryptocurrency market with ease thanks to a comprehensive manual that is provided by Patel’s study. Although there may be variations in the SOL over a short period of time, the long-term picture is good so long as it continues to move upward and breaks through critical resistance levels.

Featured image from Lookphotos, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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