End of the road for Solana? Analyst predicts a 77% price drop to $40

In a stunning take, a crypto analyst has anticipated a crash in Solana’s value regardless of continued bull momentum. This analyst predicts a crash in Solana’s value, provide a brand new perspective on the crypto heavyweight.

In response to a crypto dealer who goes by the identify AlanSantana on TradingView and could be very lively on the buying and selling platform, Solana’s buying and selling quantity over the previous two months means that the crypto is gearing up for a crash.

Analyst predicts enormous crash for Solana

AlanSantana observed that Solana’s buying and selling quantity fell considerably between September and October 2024, a improvement that usually indicators a bearish outlook and will point out an impending downward value impulse. Inferring this outlook, it signifies that the amount development signifies that demand is declining.

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The analyst additionally attracts a distinction with final yr’s buying and selling exercise, notably from September to November 2023, when Solana’s quantity elevated. This enhance in buying and selling quantity fueled a bullish rally that continued into the primary quarter of 2024, with momentum propelling Solana to substantial highs in March.

Primarily based on the distinction in two time durations and the present decline in buying and selling quantity, the analyst instructed that Solana is extra more likely to transfer in a bearish route. In mild of this, he highlighted a Solana value crash beneath the $50 value degree. Curiously, a crash beneath $50 will successfully wipe out the positive factors of the previous yr and return the cryptocurrency to its value vary in November 2023.

SOL whales proceed exercise

Solana nonetheless largely is in a bullish mode regardless of the drop in buying and selling quantity identified by AlanSantana. Crypto whales have elevated their Solana buying and selling exercise over the previous week, in accordance with knowledge from on-chain monitoring agency Lookonchain.

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In a single recent message Social media platform X, Lookonchain highlighted three examples of Solana whale addresses withdrawing and staking SOL tokens from crypto exchanges. The biggest withdrawal got here from deal with “AA21…VxH9,” which moved 153,511 SOL tokens price roughly $26.4 million from Binance for staking.

One other whale, recognized with the deal with “EHax…gAUa,” has withdrawn 35,498 SOL tokens price $6.12 million from Binance and Kraken over the previous three days, additionally staking the tokens. Then again, whale deal with “EGzi…mR7g” bought 13,000 SOL tokens price $2.3 million from Binance to carry its whole holdings to 95,651 SOL.

Curiously sufficient, there may be one other intelligent Solana whale deal with recently sold 26,726 SOL price $3.86 million. This whale, identified for purchasing low and promoting excessive, currently has 42,729 SOL, that are valued at $7.61 million.

On the time of writing, Solana is buying and selling at $178, up 8% in seven days. The buildup and momentum are bullish and a crash in direction of $40 appears bleak for the time being.

Featured picture created with Dall.E, chart from Tradingview.com