Solana Price Prediction: SOL Could Be at Risk of Dropping to $100 as It Retests Major Resistance

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1. The Solana Price Drops Out of a Bullish Channel

2. Technicals Hint at a Short-Term Correction

The Solana price printed a slight gain over the past 24 hours to trade at $109.30 at press time.

The Solana Price Drops Out of a Bullish Channel

4-hour chart for SOL/USDT (Source: TradingView)

The Solana price dropped out of a short-term positive price channel over the past 24 hours. This is as the altcoin attempts to challenge the $100 resistance level. Should it be rejected by this significant price point, it may retrace to the immediate support level at $100. Continued sell pressure could put SOL at risk of falling to $93.10 in the short term. In an extremely bearish scenario, the Solana price may drop to as low as $85.85.

This bearish thesis may be invalidated if the Solana price closes a 4-hour candle above $110 in the next 24 hours. In this alternative scenario, SOL could have the foundation needed to rise to the next major barrier at $118.

Technicals Hint at a Short-Term Correction

Technical indicators on SOL’s 4-hour chart suggest the Solana price may drop in the short term. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are flagging bearish.

The MACD line is closing in on the MACD Signal line, which could be an early indication of the Solana price entering into a negative cycle. In addition to this, the RSI line is looking to cross below its Simple Moving Average (SMA) line. An intersection between these two lines could be seen by traders as a sign that sellers have gained the upper hand against buyers on SOL’s charts. As a result, it will be easier for bears to drag the Solana price down in the next few days than it will be for bulls to boost it during the same time.

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