Solana price could dip to $120 before aiming for new highs

Solana (CRYPTO:SOL) has recently seen a significant price decline, losing 12% of its value over the past week. 

Crypto analyst Crypto Kaleo suggests that Solana’s price might drop further to around $120 before setting the stage for a potential bullish rally. 

This prediction is based on recent market trends and technical indicators, which show SOL trading below key moving averages, signaling a bearish outlook. 

Kaleo first predicted a drop in Solana’s price on August 27, and within a few days, the token fell to $130. 

As of now, the price continues to hover around this level, with a further drop to $120 or even $110 not ruled out. 

Solana reached its all-time high (ATH) of $260 in November 2021, and it touched $200 earlier this year, sparking hopes for a new ATH. 

However, these expectations have yet to materialize, and SOL appears to be following a familiar downtrend, similar to its drop from $204 to $78 in March 2022. 

On the daily chart, Solana is trading below both the 20-day and 50-day Exponential Moving Averages (EMAs), which are key indicators for identifying trend directions. 

When a cryptocurrency's price falls below these moving averages, it usually signals a bearish trend. 

As long as SOL remains below these levels, the likelihood of further price declines persists. 

Currently, bulls are attempting to defend the support level at $128.37. 

If they manage to hold this support, Solana’s price could aim for $137.43, a critical resistance level. 

Failing to break above this point might lead to a consolidation phase, during which the price could hover around $127.97. 

If selling pressure continues, the $120 prediction may come to fruition. 

In a more bearish scenario, a drop to $110 is possible. 

However, a drop to these lower levels could set the stage for a strong rebound. 

If Solana consolidates around $120 and then rallies, the token could potentially reach $174.11. 

This rally could pave the way for a new all-time high later in 2024 or early 2025, assuming broader market conditions improve and investor sentiment turns bullish. 

At press time, Solana (SOL) price was at $133.95.