Solana Price Prediction: Two Bearish Scenarios Could Hit $162 After Fakeout
Solana Price Surge: Analyzing Potential Bearish Trends
Recent Price Movements of Solana
In recent weeks, Solana has experienced a gradual increase in its price, climbing from a low of $127 in June to over $200 at the time of this report. This upward trend has been fueled by the introduction of new projects on the blockchain, such as USELESS, which have contributed to pushing SOL toward the significant $200 mark. However, there are growing concerns regarding the sustainability of this rally and the possibility of a downturn.
Bearish Pressure on Solana
While the current sentiment appears optimistic, a crypto analyst has raised concerns about increasing bearish pressure on Solana. According to their analysis, the recent surge that propelled the asset past the $190 threshold may have been a classic case of a false breakout.
This rally allowed Solana to surpass a resistance level that had been established around $170, paving the way for its ascent to $200. However, analysts warn that a significant obstacle now exists that could trigger a decline in price.
The analyst notes that despite the recent rally, Solana continues to trade within an ascending channel, indicating that the breakout was not as robust as it seemed. This lack of strength raises the risk of a bearish reversal.
Potential Bearish Scenarios
The analyst outlined two possible bearish outcomes for Solana. The first scenario involves a direct drop to the maximum pain level (MPL), which is currently estimated at around $162.30. However, given that the price has already surpassed $190, this scenario seems less likely.
The second, and more probable, scenario suggests that Solana may attempt to retest its recent highs before experiencing a decline. This could also lead to the formation of a lower high before a significant drop occurs. Regardless of the path taken, both scenarios indicate a potential decline toward the MPL.
Record Open Interest in Solana
The recent price increase has sparked a surge in interest surrounding Solana, resulting in open interest reaching unprecedented levels. Open interest refers to the total number of open long and short positions for an asset, and data from Coinglass reveals that Solana’s open interest has now exceeded $10.96 billion, surpassing its previous record of $8.79 billion.
Interestingly, despite this surge in open interest, Solana’s current price remains significantly lower than it was during the last peak in open interest. This discrepancy may suggest that there is still potential for further upward movement before the price begins to stabilize or decline.
Disclaimer: This article is for informational purposes only. Past performance does not guarantee future results.
