Solana, which lost 42 percent of its value in the last month, approached a critical technical breaking point after testing the lowest levels in two years. Solana, which is growing rapidly among major cryptocurrency projects, is trading at around $82, moving away from its all-time high of $293 last year. During the same period, its market value suffered a serious decline, with losses of billions of dollars.
Technical Outlooks and Big Goals
The head and shoulders formation evident on Solana’s price chart is causing obvious concerns among technical analysts. Market analysts point out that this pattern is a classic bearish signal. Especially when looking at the chart in recent months, it seems that the structure is almost completed.
An analyst using the pseudonym “Shitpoastin” in the crypto market pointed to the appearance of the monthly Solana chart, emphasizing that the head and shoulders formation has been completed and the price may not find support below $30.
It was suggested that this structure formed on the chart could leave a gap that would carry the price up to $30.
New Targets from Analysts
Analyst named Bitcoinsensus also thinks that the decline may accelerate with the breaking of the macro-scale head and shoulders formation. According to the analyst, if the current structure continues, the Solana price may drop to $50.
Bitcoinsensus states that the target price may drop to $50.
More pessimistic predictions were also shared among market watchers. Alex Clay stated that around $42, which is seen as an important demand area, can be followed as a target. This price range means an additional loss of nearly 50 percent compared to current levels.
Alex Clay reports that the $42 level has been an important support point in past cycles.
Key Data and Support Points
Despite all these technical signals, some data point to a possible bottom formation. According to Solana’s MVRV indicators, it is possible for the price to find a bottom at $75. There have been strong price increases in the past, especially after similar levels were tested in March 2022.
Experts point out that if $75 is broken downwards, a new sales wave may begin. It is stated that in such a movement, price movements may have results similar to the rapid declines in 2022. From a technical perspective, the $30 to $42 range stands out as the next support zone.
Despite the price pressure, transaction volume and user activity on the Solana network is quite high. Recently, Solana’s revenue from transaction fees has also doubled that of Ethereum. However, experts think that the difference between the price and network data requires cautious action for investors.
According to analysts, closings above $ 100 may be the most important indicator that will break the selling pressure. Unless this level is exceeded, the pressure of the head and shoulders structure continues.
