Solana (SOL) has managed to surge past the psychologically crucial $100 mark. The coin is however only just above $100, and while this is a good thing, there may be more downside in the coming days. More analysis in the article but first, key takeaway notes:
Despite surging above $100, SOL has failed to find support on the 50-day SMA of $105.
SOL has also failed to significantly breakout over the last 30 days.
More weakness will follow, and the altcoin will bottom at $75 before the next leg up.
Data Source: TradingView
Solana – Why $75 is more likely
Every analysis of course has two sides. While we strongly predict a bearish trend for SOL in the near term, this prediction will become null and void if bulls can take SOL above $128. However, this appears highly unlikely in the days ahead.
In fact, looking at SOL’s trend over the last 30 days, the coin has struggled to sustain gains above its 50-day SMA of $105. We do not see any big changes in market sentiment to suggest that this time around, things will be different.
As such, although SOL is still above the psychologically crucial price of $100, we expect it to drop further. The coin will likely bottom at $75 or thereabout. This will represent a loss of 25% from the current price.
Is Solana still worth it?
Solana has always been a huge crypto project. But there are some investors who feel that the coin is not delivering on its potential. However, it’s only a matter of time before SOL gets to where it should be.
In case you have not purchased it yet, you can wait for the price to bottom at $75 and step in. After that, just hold long-term or sell when the price breaks out once more. Either way. Solana will always be worth it for any crypto investor.