Solana (SOL) has started the year on a downtrend, recording successive bearish weekly candlesticks for the first time in over three months as it continued to drop from its Christmas high.
SOL dipped below $100 yesterday to bottom out at $85, but it has now recouped some of the losses and trades 6% higher today, with analysts divided on its long-term outlook.

Solana was last year’s best performer in the top 20 cryptos by market cap, gaining 923% in 2023 to hit a 52-week high at $124. But has the tide turned, and is Solana’s momentum starting to reverse? In the past day, the token dipped below $100 for the first time since before Christmas, and analysts are divided on what the future holds for one of the most popular tokens.

SOL trades at $100.31 at press time, gaining 6.65% in the past 24 hours, where it set a three-week low at $85 before it regained its upward momentum.

In that time, its trading volume shot up 12% as bulls took control to reverse a trend that has been ongoing for the past two weeks. SOL started the week at $113.6, and despite a slight momentum shift on January 4, it has been dipping gradually.

The token recorded consecutive bearish weekly candlesticks for the first time since early October, as the new year proved tough to crack for SOL. Its relative strength index (RSI), which gauges a crypto’s strength based on its closing prices in a given period, stands at 77 in the past week. An RSI reading past 70 indicates that an asset has been massively overbought and is due a correction. Even in the past day, its RSI stands north of 55, which is on the upper side of a neutral reading.

What Next for Solana (SOL)?

Some analysts believe that SOL will continue to dip and trade below the critical $100 point, with one analyst saying that we could be headed to the $70 range. Known as Pentoshi to his 740,000 followers on social media, he stated:

Not sure we will get as low as I have here, but do expect at some point to be able to bid in the $70’s. Looking forward to not just trading SOL, but holding some eco-system coins for the next year or so.

Max Keiser, the renowned Bitcoin maxi who is a long-time critic of Solana, is firmly among those who believe that SOL is going down, taunting the community with his “the rug pull has begun” posts on social media.

Others believe that the comeback on the last day is setting Solana up for a major rally.

https://twitter.com/rektcapital/status/1744489899242181086

Ali Martinez believes that it’s critical for SOL to close the day above $110. In his analysis of a bull flag pattern that the crypto is forming, he believes the next price target is $163.

Meanwhile, meme coins continue to fuel the Solana ecosystem, with the latest— Dogwifhat (WIF)—gaining 67% in the past day to hit $137 million in market cap.

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Filed under: Bitcoin - @ January 9, 2024 4:22 pm