June – A Challenging Month for the Crypto Market
June has proven to be a very difficult month for the cryptocurrency market, as all major cryptocurrencies suffered from significant selling pressure due to hawkish signals from central banks and the ongoing uncertainty caused by the Ukraine crisis.
Investors are becoming increasingly worried about the risk of a recession, and if central banks continue with aggressive monetary policies, this could potentially push the global economy toward a recession. In such a scenario, Solana and other cryptocurrencies could see further declines as investors seek safer places to park their money.
Технически анализ на Solana
After peaking above $140 in April 2022, Solana (SOL) has experienced a loss of over 70%. The price has recently stabilized above the $30 support level, but if it drops below this point, it may test the next support level at $25.
In the chart below, I’ve marked the trendline, and as long as Solana’s price remains below this trendline, we cannot discuss a trend reversal, and the price remains in the SELL-ZONE.
Bearish traders who already hold Solana positions can feel confident in the ongoing downtrend unless the cryptocurrency breaks a new higher high. Solana’s price is also closely tied to Bitcoin’s price, and if Bitcoin falls below $20,000 again, we could see Solana reach new lows.
Key Support and Resistance Levels for Solana
On the chart below (covering the period since July 2021), I have highlighted key support and resistance levels to help traders predict potential price movements. The more frequently a price level is tested without breaking, the stronger that support or resistance becomes. If the price breaks through resistance, that level could potentially become support. Solana is currently in a “bearish phase,” but if the price rises above $75, it could signal a trend reversal, with the next target potentially at $100. The current support level is at $30, and if this level is breached, it would trigger a “SELL” signal, opening the path down to $25. If the price falls below $25, which represents strong support, the next target may be around $20.
Factors Supporting Solana’s Price Rise
Since the beginning of July, SOL has risen more than 20%, climbing from a low of $31.85 to a high of $39.70. This sharp upward movement saw SOL test the $39 level multiple times, but it lacked sufficient momentum to close above this mark.
Several surveys indicate that institutional investors remain bearish on Solana, and it’s crucial to note that the negative sentiment isn’t limited to institutional investors. The spot markets have also experienced renewed sell-offs, and because of this, Solana may struggle to maintain a position above the $30 mark.
Although Solana remains in the “bearish phase,” if the price rises above $75, it could indicate a trend reversal, with the next target potentially at $100. Traders should also note that Solana’s price is correlated with Bitcoin. If Bitcoin surges above $25,000, we might see Solana at $50.
Signs Pointing to Further Decline for Solana
Economists have raised concerns about a potential global recession, and there seems to be a consensus that Solana’s price will continue to fall before reaching the bottom of the current bear market. Although the price is currently holding above the $30 support, a drop below this level could push Solana to test the next support level at $25. Solana’s price is closely correlated with Bitcoin’s, and when Bitcoin’s price drops, it generally exerts downward pressure on Solana as well.
Solana Price Predictions from Analysts and Experts
Despite significant sell-offs over the past few months, many analysts and experts remain bearish on Solana. The third quarter of 2022 is expected to be challenging for Solana, and according to Mike Novogratz, CEO of Galaxy Digital, cryptocurrencies could decline by more than 50% from their current levels. As of writing, the global crypto market cap has fallen to $962 billion, down from nearly $3 trillion last year. Since reaching its all-time high in November, Bitcoin has dropped more than 70%, which has negatively impacted other cryptocurrencies.
A recent Deutsche Bank survey indicated that the crypto crash could persist in the coming weeks. Investor Peter Brandt mentioned that bulls may have to wait several years before seeing another record high. Jim Cramer, a television personality and host of CNBC’s “Mad Money,” stated that the bottom for Bitcoin, Solana, and other cryptocurrencies may still be far from sight. According to Cramer, given the current state of the global economy, it’s possible that crypto market capitalization could fall further.
