Since November 7, 2021, Solana price has dropped by more than 60 percent. However, in the past few days, the cryptocurrency has been making gains in the market, with today’s trading session recording a strong price gain of over 3 percent.
The Solana price drop can be attributed to the slump in the cryptocurrency market that started late last year. This slump in price also affected large cryptocurrencies such as Bitcoin. Solana being an altcoin, is heavily impacted by such fundamentals. It is also positively correlated with Bitcoin, which had lost almost 50 percent of its value. This meant Solana followed the slump trend and has not since recovered from the market downtrend.
Solana Price Prediction
For the past few months, I have tracked the current Solana drop in price and how it forms bearish flags before a big drop. On January 26, the same pattern was observed in my analysis, which led me to predict that Solana would be dropping further after the bearish flag. Today, this analysis played out as predicted, and the current market structure also shows that the prices are likely to continue with these same patterns.
Looking at the Solana price chart below, we see that the prices have been on the long-term bearish move for months. We can also see that the current prices are trading on a bearish flag. It also looks like the bearish flag is on its last leg, and hence I expect the prices to start dropping. I expect the prices to drop to the $67 support level based on my analysis. I also maintain that the current bearish move has signs that it can break the support level and trade below it in the coming days.
However, if the prices rise and go past the $94 levels, the bearish flag is invalidated. It will also mark the beginning of a new bullish move. It will also spell the end of the current bearish move that has lasted for months and seen the cryptocurrency trading at the current price of $91.