Solana’s native SOL token has recently experienced a price drop, reaching a 45-day low of $128. Despite this bearish trend, a cryptocurrency analyst predicts that the token will surpass the $1,000 mark in the future. The current price of SOL has decreased by 15% over the past week, with technical analysis showing that the token’s 50-simple moving average is around $149, while the 200 SMA sits at $100.9. The price is currently below the 50 SMA but above the 200 SMA, indicating a short-term bearish sentiment within a long-term bullish trend as long as it remains above the 200 SMA. The Relative Strength Index (RSI) for SOL is at 32, signaling oversold territory, and the Moving Average Convergence Divergence (MACD) indicator shows bearish momentum as its line crosses below the signal line.
The MACD histogram suggests ongoing bearish momentum for Solana as it approaches its support level near the 200 SMA and another support level at $122. The price faces resistance at the 50 SMA, around $149, and a break above this level could lead to a resumption of the bullish trend. Amidst these technical indicators, a pseudonymous cryptocurrency analyst, Crypto Patel, shared a long-term price chart for SOL on social media, indicating a potential move towards the $1,000 mark. The chart displays a cup and handle pattern, which is considered a bullish signal in technical analysis. This pattern forms when a security’s price trends downward and recovers to create a “u” shape, followed by a slight downward drift known as the handle.
While Solana’s current price may be facing bearish pressure, the long-term outlook for the token remains optimistic as indicated by the potential cup and handle pattern. With support levels near $122 and a resistance level at $149, SOL may see a resurgence in its bullish trend if it breaks above the 50 SMA. The $1,000 price target set by Crypto Patel has gained attention among cryptocurrency enthusiasts, highlighting the potential for significant growth in the future. As the cryptocurrency market continues to experience volatility, Solana’s ability to surpass the $1,000 mark would mark a significant milestone for the smart contract platform and its native token. Investors and traders are closely monitoring the price movements of SOL to capitalize on potential opportunities in the market.