Experts are warning of a potential price drop for Solana, despite broader crypto market bullish trends.
Solana Price Analysis
Veteran financial trader Matthew Dixon warned of a probable leg down for Solana. In his recent analysis, Dixon shared a 4-hour SOL chart indicating a completed five-wave Elliott Wave pattern, followed by an ABC corrective structure. Within this correction, a triangle pattern has formed in the B-wave, typically a precursor to further downside movement. Key Fibonacci retracement levels reveal that SOL has tested the 0.618 ($212.90) and 0.786 ($221.81) zones, encountering strong resistance.
Broader Market Trends
Crypto market analyst Ali observed that the TD Sequential indicator is showing sell signals for several cryptocurrencies, such as BTC, XRP, SOL, and ADA. This indicator frequently comes before short-term reversals, bolstering the claim that SOL might experience additional decreases.
Market Sentiment and Predictions
Sentiment in the crypto derivatives market also leans bearish. Data from CryptoRank.io highlights Polymarket traders’ expectations for price movements in February. However, traders foresee a potential turnaround by March, with a 50% probability that Bitcoin could reach $110,000, implying a wider market rebound could occur.
Solana’s price analysis shows significant bearish signals, including the Elliott Wave structure and RSI divergence. While there is some bullish sentiment, the likelihood of a downward move remains high.
