Solana Faces Massive Bearish Threat: $80 Target Looms
Solanas recent price action has left traders cautious. After failing to break above the $139 mark, the cryptocurrency has slipped, trading around $138 at the time of writing. Investors are concerned about a potential further decline, especially as veteran analyst Peter Brandt warns of a bearish pattern on the horizon.
Peter Brandt, known for his keen market insights, has identified a bearish pattern forming in Solanas price chart. He points to a rectangular consolidation with support at $129 and resistance near $204. If Solana breaks below this $129 level, the measured move from the rectangle suggests the cryptocurrency could fall as low as $80.
The current market situation doesnt look promising. SOL is hovering below its 8-day simple moving average (SMA) of $133.58, signaling resistance from short-term price trends. The Relative Strength Index (RSI) stands at 42.17, which is below the neutral 50 mark, showing persistent selling pressure but not yet indicating an oversold condition. This suggests that more room for downside exists if sellers continue dominating the market.
Solana Development Activity Declines
Further compounding the negative outlook is a decline in Solanas development activity. According to Santiments Development Activity Index, the level of engagement on Solanas public GitHub repositories has dropped since early September. This reduced activity reflects lower developer confidence and could weigh heavily on market sentiment as project growth seems to be stalling.
The ongoing liquidation of Solana by bankrupt firms FTX and Alameda has added to the bearish case. Over the last three months, these entities have unstaked 530,000 SOL, worth around $71 million. Their recent monthly sell-offs averaged 176,700 SOL, with a single redemption of 177,693 SOL valued at $23.75 million. Despite these significant sales, FTX and Alameda still control over 7 million SOL, worth nearly $945.7 million, which could further pressure the market if sold off.
With a mix of technical, market, and external factors, Solanas outlook looks fragile, making investors wary of further downside risks.
Read more: https://www.tronweekly.com/solana-faces-bearish-threat-80-target-looms/
Text source: TronWeekly
