The Solana price has experienced a significant drop since reaching an all-time high of nearly $300 in January 2025. Despite a recent market recovery, the price remains more than 45% below its peak, indicating the challenges that the altcoin has been facing. A crypto analyst has now raised concerns that the Solana price could potentially plummet even further, with a projected 40% crash looming on the horizon.
The Alchemist Trader, a prominent crypto analyst, has identified the emergence of a rare bullish harmonic pattern on the Solana price chart. While this pattern typically signals a positive outlook for any digital asset, there are some immediate obstacles that Solana must overcome. One major hurdle is the need for a liquidity sweep of previous lows, with the recent price floor at around $95 representing a potential 40% decline from the current price above $150. Several technical indicators on the chart further support the likelihood of this downward move, including resistance levels at the Value Area High and the 0.618 Fibonacci level, as well as the completion of the C-leg of the wave at $95.
The analyst highlights that if Solana fails to break through the resistance levels decisively, a crash to $95 becomes increasingly probable. This correction could trigger a 40% decline in the price, leading to a retest of the $95 support level. However, it is important to note that this bearish phase is expected to be temporary and could pave the way for a stronger upward momentum in the long run.
Despite the near-term bearish outlook, the analyst predicts that once the crash to $95 is complete, Solana will embark on a new rally. The price is anticipated to surge by over 100%, ultimately surpassing $200 and continuing its upward trajectory. The analyst emphasizes the importance of monitoring key resistance levels and volume patterns to confirm or invalidate the projected scenario.
In conclusion, while the short-term forecast for Solana may point to a potential price crash, the overall bullish trend remains intact. Traders are advised to remain vigilant for signs of rejection at current resistance levels or a breakout above the value area high that could negate the bearish harmonic setup. As Solana navigates through this period of price volatility, investors should stay informed and agile in their trading strategies to capitalize on potential opportunities in the market.