Who would have thought that Solana would trade SOL/USD at a double digit price, let alone a single digit price? Unfortunately, this is the reality for lovers of the once promising cryptocurrency known as the Ethereum killer. After hitting a high of over $265 in November 2021, SOL was touted as the next coin to reach $1,000. It’s now trading at just $11, exactly a year from its all-time high. The cryptocurrency has yet to find a bottom, with technical indicators pointing the price below $10.
While a bear sentiment is responsible for the significant SOL decline, recent crises show the risk of collapsed FTX. as CoinJournal reported, Alameda Research has significant holdings of SOL tokens. The exposure has seen Coin Bureau host “Guy” warning his 2.17 million subscribers on YouTube about the SOL price.
Analysts expect SOL to come under further pressure and drop another 40%. He says the coin will suffer when FTX and Alameda liquidate their holdings in Solana to pay off creditors and other users. He further added that the situation at SOL could be worse cryptocurrency Showing that they are still down. The analyst is estimating a $8 SOL price. A technical perspective suggests that we may see even lower price levels for the cryptocurrency.
SOL falling below an inside-bar pattern is a Beard indicator
A technical approach suggests that SOL bulls are losing the battle at $12. The MACD indicator has pushed further into the bear zone. The indicator shows the increasing momentum of the bear market.
Furthermore, SOL is initiating a bearish breakout from an inside bar pattern. Once confirmed, we should be ready to take a lower SOL price until the close of the daily candlestick.
What next for SOL?
With weak momentum and a bearish inside bar breakout, SOL could move towards a single digit price. There is a potential 50% downside move to the next potential support at $5. The level coincides with the beginning of the bullish momentum in February 2021.
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