Solana faces a recent price decline, but analysts remain optimistic, forecasting a potential breakout and new highs.
Since this week, Solana has experienced a significant price dip, dropping from its monthly high of $161.62 to trade under $137. In the last 24 hours alone, Solana has posted a 4.48% decline.
The price drop comes amidst recent criticism from former intelligence contractor Edward Snowden. Despite this downward trend, analysts remain divided on Solana’s future performance. Some forecast bullish momentum, while others foresee a further decline.
Bullish Forecast for Solana
In a Tuesday post, crypto analyst Jelle, who has 91,000 followers, expressed optimism about Solana’s potential to break out of its current consolidation phase. According to Jelle, despite the broader crypto market experiencing months of price declines, Solana has not broken down from its consolidation range.
He noted that the asset is gradually pushing toward higher levels, citing the possibility of a new leg upward. Jelle’s analysis identified two consolidation zones: one between $125 and $165 and another at lower levels between $80 and $100, where the asset previously hovered before its breakout.
Jelle projected Solana could surpass its all-time high of $260 and create a fresh peak within the next three months.
Other market participants, such as Conor Kenny, have echoed similar sentiments, drawing parallels between Solana’s current trajectory and its impressive performance in mid-2021. Kenny projects Solana could attain a peak at $1,000 per coin.
Crypto commentator Davinci Jeremie made a similar optimistic projection for Solana’s price, agreeing it could reach $1,000 per token.
Bearish Calls on Solana
Amid these positive outlooks for Solana, some analysts remain cautious about Solana’s near-term performance. Matthew Dixon, CEO of Evai, suggests the likelihood of further decline.
According to Dixon, the recent upward move from Solana’s chart low is corrective rather than impulsive. He explains that last night’s price drop invalidated a potential bullish scenario, as Solana fell below the first wave’s invalidation level. Based on this, Dixon concludes that lower prices are likely ahead.
Though Dixon did not specify a target price, other analysts have warned that Solana could fall as low as $55. These views substantially contrast with more optimistic forecasts about Solana.
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