As the cryptocurrency industry continues to suffer the aftershocks of the FTX collapse, some digital assets are performing worse than others, including Solana (SOL), which is taking a downward path after being impacted heavily by the crash of the crypto exchange.
Specifically, Solana has been following a steady decline chart pattern for most of the past week, looking “ugly overall in the short/mid term,” especially if it loses the critical area on the Higher Time Frame (HFT) charts indicated by the crypto analyst Altcoin Sherpa on December 26.
According to the pseudonymous expert, the likely scenario for Solana in this situation is that it is “probably going to fill the gap and $5 is next up.” Meanwhile, Solana was at press time trading at the price of $11.19, which makes the prognosis particularly bearish.
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In fact, the only chance for longing Solana at this point is breaking out of the bearish trading pattern to the upside – “if you see a break and then a reclaim of the swing low,” as Altcoin Sherpa believes and as demonstrated on the analyst’s second SOL chart.
Solana price continues to drop
Notably, Solana took a major hit after the crypto exchange FTX imploded, and its founder Sam Bankman-Fried was arrested over fraud allegations, taking into account that SOL was enjoying a tremendous amount of support coming from FTX’s former CEO.
The most dramatic drop in recent months for Solana took place in early November, when the SOL price took a massive fall from $37.02 on November 5 to $13.49 on November 9, losing 63.56% in just four days. Since then, it has continued to decline, albeit slower and in a more sideways manner, currently holding support at $10.43.
At press time, Solana was changing hands at the price of $11.19, down 1.20% over the previous 24 hours, losing 9.37% during the week, and adding up to the 21.42% slump across its monthly chart, as per data retrieved by Finbold on December 27.
At the same time, the machine learning algorithm at PricePredictions has set the price of Solana at $11.19 for January 1, 2023, predicting little change for the decentralized finance (DeFi) token. As for its longer-term prognosis, it is even more bearish, forecasting $11.05 for SOL on January 27.
If no triggers are there to change the trend and push the price of Solana upward, such as positive developments around the token, as well as a more positive atmosphere on the crypto market and global macroeconomic landscape, these predictions could, indeed, come true.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
