Despite Solana (SOL) losing 12% of its value in the last seven days, crypto analyst Crypto Kaleo says that SOL’s price could drop further to $120. If this happens, it may set the stage for a stronger upswing, allowing Solana to consolidate before aiming for new highs.

This analysis will assess whether the prediction of a drop to $120 is likely and how it could impact Solana’s future trajectory.

Kaleo first shared his opinion on August 27, predicting a price drop for Solana (SOL). Three days later, SOL fell to $130, and the analyst reaffirmed his stance, suggesting it could go lower. Today, he mentioned the same as crypto lose nearly 5% in the last 24 hours.

Solana’s all-time high (ATH) of $260 occurred in November 2021, and earlier this year, the token hit $200, sparking speculation of a new ATH. However, this has yet to materialize.

On the weekly chart, SOL seems to be following a familiar pattern, similar to its decline from $204 to $78 in March 2022. While the price may not fall that low, it is likely to drop to $120 or potentially as low as $110.

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On the daily chart, SOL is trading below both the 20-day and 50-day Exponential Moving Averages (EMAs). The EMA helps indicate trend direction, and when a cryptocurrency’s price is below these levels, it signals a bearish trend.

Conversely, when the price is above the EMAs, the trend is considered bullish. As long as SOL remains below these key thresholds, the token risks further decline.

A closer look at the daily chart reveals that bulls are attempting to defend support at $128.37. If successful, the next price target for SOL could be around $137.43, a crucial resistance level for the token.

Failure to break above this resistance may cause SOL’s price to drop to $127.97, where it could consolidate for a while. During this period, market participants may continue selling, which could lead to the $120 price prediction coming true. In a more bearish scenario, SOL could fall to $110.

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However, reaching this level might trigger a strong rally, potentially pushing the token to $174.11. If this rally occurs, Solana could approach a new all-time high later this year or in early 2025.

The post Solana (SOL) Price Could Drop to $120 Before New All-Time High, Analyst Says appeared first on BeInCrypto.

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