Solana (SOL) lost the bullish structure it was building after it bottomed out at nearly $60. With the prices now crashing below the uptrend line, an analyst is more interested in the price action now than before.
SOL dismantles its bullish structure from $60
Since its crash in February, when SOL reached $78, the coin’s price action has been horizontal. The price was constricted within a tight range between $78 and $89, although at times, it hit prices above $95. However, come June SOL lost this support ($78), which had been holding the prices since February.
Having lost this support level, SOL managed to bottom at $60. Priced at $60, SOL appeared a steal for traders who quickly entered the market and bought the dip. With more buyers joining the party, SOL began rallying again. However, the rally lasted just a couple of weeks before the price once again breached the uptrend line as shown in the chart above.
SOL analyst expects prices to fall to $45
Now that SOL has lost its bullish structure, it has gained the interest of a technical analyst, Ardi. Ardi compared how Solana behaved during the past bear market and applied the same logic to the current market.
According to Ardi, SOL topped around $260 and eventually bottomed near $8 during the last bear market. That’s about a 97% price drop due to the FTX collapse. In the current cycle, Solana peaked at $295, and with the price now around $60, it has lost about 77%. Ardi believes that a loss of 80-85% would be something that would be justifiable and hence expects Solana to hit values between $45 and $60. This level also corresponds to the lowest cloud of the indicator shown.
The above chart confirms that SOL price could further crash. Based on the technical structure, which is a double top, Solana should further crash below the lower trendline of the double top pattern.
