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01/08/24
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Solana Faces Price Pressures Amid SEC Developments and Mixed Analyst Sentiments
Solana (SOL) has recently attracted attention following an adjustment by the U.S. Securities and Exchange Commission (SEC) concerning its classification in an ongoing complaint. On a notable day, Solana emerged as the second largest revenue-generating cryptocurrency project, generating significant profits in a highly competitive market. However, analysts have expressed mixed sentiments regarding its price trajectory, with some suggesting that a recent rejection at a crucial technical level could lead to a drop down to $150 before any potential rally can occur.
In the wake of these developments, traders are setting ambitious price targets for Solana. One prominent trader analyzed the token’s historical performance, noting that it previously experienced a staggering 96% decline from its all-time high during a bearish period but later underwent a 343-day accumulation phase. Following this consolidation, Solana saw an impressive 600% price surge, reaching over $200 earlier this year. The trader suggests that SOL is once again in an accumulation phase, indicating a potential rise of over 455% that could take it to the $1,000 mark in the coming months.
Conversely, other analysts have expressed caution regarding Solana’s current price levels. One trader pointed out that SOL’s recent rejection at the weekly opening price of $190 could signal trouble if it fails to maintain support at $180. If that level does not hold, a retest of the monthly opening price of $147 might be forthcoming before any upward momentum resumes. Another analyst backed this analysis, projecting that investors may have the opportunity to purchase SOL below $150 again prior to any significant rally toward $500.
Despite the influx of optimistic news, including the SEC’s revised stance in its lawsuit against Binance and Solana’s impressive revenue generation, the token’s price has remained relatively stagnant, fluctuating between $177 and $183. At the time of reporting, SOL was valued at $182, reflecting a minimal decline of 0.3% from the previous day, though it has experienced a modest weekly increase of 2.5%.
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