Analyst unveils future forecast for Solana’s price performance
The Solana market is currently in a rangebound state, with support at $110 and resistance at $120, according to an analyst. In a recent YouTube video, the analyst emphasized that although Solana remains fundamentally strong, traders should exercise patience due to uncertain year-end trading conditions.
The analyst explained that Solana has been fluctuating between the support level of $110 and the resistance level of around $120. While Solana briefly surpassed $120 at one point, it was unable to sustain those gains. The analyst noted that this type of false breakout is not uncommon during the holiday season, when liquidity is lower and trading activity is irregular.
Additionally, the analyst highlighted the healthy trading volumes and open interest in Solana futures contracts as indications of continued strength. Looking ahead, the analyst predicts that Solana will soon experience a bullish breakout above $120 or a bearish breakdown below $110. If Bitcoin fails to maintain its position above $42,000, the analyst believes that Solana could potentially drop to $95. However, regardless of the outcome, the analyst believes that Solana is on a longer-term bullish trajectory.
The analyst concluded by affirming that Solana remains fundamentally bullish and advised traders to patiently wait for a clear breakout in either direction. Despite recent volatility, the analyst expressed optimism about Solana, pointing to strong on-chain activity and developer participation. Nonetheless, the analyst suggested that traders should consider reducing risk in anticipation of potential short-term downside before a subsequent upward movement.
Read more: Solana achieves new monthly records for new and active addresses.
