SOL Price in Danger! Is a Massive Drop to $90 Coming?

Solana (SOL) is approaching a critical juncture as its price hovers around $124, with growing concerns that the cryptocurrency may breach the crucial $100 threshold. Market analysts are closely watching whether Solana can maintain support around $126, as a sustained close below this level could trigger a significant price correction, potentially sending SOL down to $110 or even $90.

Key Support at $126 Under Threat

Market analyst Ali Martinez highlighted that Solana has been consolidating within a price channel since earlier this year. The TD Sequential buy signal had initially indicated a potential rebound for SOL from the lower boundary of its trading channel toward resistance levels at $154 and $187. However, this bullish signal has been invalidated by broader market sell-offs, causing Solana to lose approximately 20% over the past two weeks.

Despite these challenges, Solana remains a key player in the cryptocurrency space, and some optimism remains. Historical patterns suggest that Solana could experience a price upswing leading up to its Breakpoint event, an annual conference that has previously coincided with price rallies. In past years, Solana surged by 35% in the two weeks leading up to the event. If this trend holds, SOL could potentially rally to $167 in the coming weeks.

Capital Influx from FTX Creditors Offers Hope

Another potential catalyst for Solana’s recovery could be the anticipated capital distribution from the now-defunct crypto exchange FTX. FTX is set to release $16 billion to its creditors, many of whom are retail investors. Analysts speculate that a significant portion of these funds could re-enter the cryptocurrency market, benefiting major assets like Solana, Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).

This influx of capital, combined with historically bullish trends in the fourth quarter, offers some hope that Solana could stabilize and recover after months of market volatility. However, Solana must first reclaim the $126 support level to avoid a deeper correction.

Can Solana Bounce Back?

As the broader crypto market continues to face uncertainty, Solana’s future hinges on its ability to maintain key support levels. If Solana can avoid a drop below $126 and capitalize on upcoming catalysts such as the Breakpoint event and the return of capital from FTX creditors, the asset could stage a significant recovery. Analysts are also optimistic about Solana Mobile 2, which may debut at the TOKEN2049 conference, further boosting the ecosystem's innovation and appeal.

For now, all eyes are on Solana as it navigates a crucial moment in its price trajectory. A successful rebound could see SOL rally toward $167, but failure to hold above $126 may lead to a deeper downturn.

Disclaimer: This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.

Source: ICOGemHunters