Solana Price Analysis: A Bearish Outlook Despite Positive Developments
The Solana (SOL) token has been trading in a tight range, with its price remaining relatively stable despite some significant announcements from the ongoing Breakpoint event. Currently, SOL is trading at $131, which is almost 50% down from its peak in September this year. Technical indicators suggest that the token may experience further downside, potentially reaching $100.
One of the notable developments in the Solana ecosystem is the bridge between Solana and Base via the Chainlink (LINK) network. This partnership is significant, as it connects two leading chains in the crypto industry, with Base hosting over 700 dApps and a Total Value Locked (TVL) of over $8.3 billion. Additionally, Ondo Finance and State Street are launching SWEEP, a new private tokenized liquidity fund that brings traditional cash management on-chain.
Other significant announcements include Animoca Brands’ decision to place its equity on Solana and Bhutan’s plan to launch the first government-backed gold token on the network. Furthermore, Coinbase has launched a product that allows users to trade all Solana tokens on a decentralized exchange, exposing Solana and its ecosystem to millions of users. Despite these positive developments, the Solana price remains bearish.
Technical Analysis of Solana Price
The daily time chart shows that SOL price has been in a strong downtrend over the past few months, moving from a high of $252 in September to currently $130. The token has formed a bearish flag pattern, with the flagpole already completed and the flag part forming. The 50-day and 200-day exponential moving averages have crossed, forming a death cross pattern.
SOL price chart | Source: crypto.news
The bearish flag pattern and death cross suggest that the token is likely to witness a strong bearish breakout, possibly to the psychological level of $100. This view will be confirmed if the price breaks below the key support level of $122, the lowest level on November 21 and December 1. On the other hand, the bearish Solana price prediction will be invalidated if it rises above the upper side of the flag pattern at $147.
In terms of investment, Solana’s ETFs have continued to rise in value since their launch in October, with inflows totaling more than $22 million this week, surpassing last week’s $20 million. This growth has resulted in cumulative net inflows of $661 million and net assets of $950 million. However, the technical analysis suggests that investors should be cautious and prepare for a potential downturn in the Solana price.
For more information on the Solana price and its potential movements, visit https://crypto.news/solana-price-risks-a-crash-to-100-despite-key-breakpoint-news/
