Solana is having a tough time riding a bullish wave, as the cryptocurrency failed to sustain its recent upward momentum. As of Friday, analysts opine that SOL could be beginning to initiate its final leg down, which could dampen the bulls’ optimism.
SOL finally going to bottom?
In a Friday X post, crypto analyst Crypto Tony shared that SOL is likely heading below $40. The analyst shared the following chart which shows the digital asset unable to continue its bullish momentum, and now looking susceptible to bearish forces.
The 3-day SOL chart shows the cryptocurrency trading near $74, down 4 percent over the past 24 hours. It also marks several Elliott Wave patterns, a descending trendline, and a projected further decline in price that goes well into 2027.
For the uninitiated, the Elliott Wave theory is a form of technical analysis that suggests market prices move in repeating wave patterns driven by investor psychology and crowd behavior.
A typical cycle consists of five impulse waves in the direction of the main trend followed by three corrective waves, helping traders identify potential trend continuations and reversals.
Things look pretty similar on a longer time-frame. On the weekly chart, SOL looks like it is heading toward a multi-year long support zone below $65. If it breaks down, the next support could be all the way down around the $20 area.
The overall sentiment toward SOL looks significantly bearish. The digital asset is currently trading a whopping 74.3 percent below its all-time high of $293. Although the cryptocurrency managed to breakout from a wedge formation, it appears to have run out of steam now.
Buy signal flashes for SOL
Offering a contrasting bullish take, seasoned crypto trader Ali Martinez highlighted that SOL has flashed the TD Sequential buy signal on the monthly chart. It’s important for SOL to sustain its price above $75 so that it can target the $120 price zone.
While concerns remain about whether SOL could ever create a new high at all, institutional interest in the digital asset remains elevated. On July 1, Forward Industries bolstered its corporate treasury with 500,000 SOL.
