The decentralized finance (DeFi) project Solana (SOL) has experienced a notable price decline over the past month, reflecting general weakness in the crypto market.
Notably, Solana previously enjoyed significant gains, primarily driven by increasing activity on the platform due to the popularity of meme coins launched on the network. Currently, the $200 mark remains a key target for SOL investors, as reaching this level could pave the way for a potential new record high.
In the meantime, in an X post on August 21, a crypto analyst known as TraderSZ suggested that Solana might be preparing for a significant upward movement after a prolonged period of consolidation. According to their technical analysis, the cryptocurrency, which has been trading within a descending trendline, now shows signs of a potential breakout.
The analysis indicates that SOL has been forming a bullish pattern, with the price expected to surge once it breaks through the current resistance levels. Key resistance points are identified at $153, $162, $175, and $188, with these levels serving as potential targets for the next upward movement. The price movement further suggests that breaching these resistance levels could propel SOL towards the $188 mark and possibly higher.
SOL price analysis chart. Source: TradingView
Overall, breaking above the descending trendline could confirm the start of a bullish trend, potentially driven by intense buying pressure, leading to rapid gains.
AI predicts SOL’s price
Looking ahead, Finbold consulted the artificial intelligence (AI) and machine learning algorithms deployed by the crypto market forecasting platform PricePredictions to assess how SOL might trade on August 31.
According to data retrieved on August 22, the platform predicted that Solana would likely experience more consolidation in the coming days. The tool forecasted that SOL might trade at $139.19 on the last day of August, reflecting a minor drop of about 2% from the asset’s price of publication.
SOL price prediction. Source: PricePredictions
In forming these predictions, the platform factors in technical analysis (TA) indicators such as the moving average convergence divergence (MACD), relative strength index (RSI), Bollinger Bands (BB), and others.
SOL price analysis
At press time, Solana was trading at $142, gaining about 1% in the last 24 hours. The token faces a challenging battle to maintain its price above the $140 support zone for any chance of reclaiming $150.
SOL seven-day price chart. Source: Finbold
On the other hand, Solana’s technical analysis is dominated by bearish sentiments. A summary of one-day gauges from TradingView aligns with the ‘sell’ sentiment at 13, while moving averages indicate a ‘strong sell’ at 11. Oscillators are recommending ‘sell’ at 2.
SOL technical analysis. Source: TradingView
Given that no major Solana-specific catalysts drive the price of SOL, the asset is now heavily dependent on the overall crypto market price movement.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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