Solana Price Faces 20% Drop as Analysts Eye Key Levels

Crypto analyst SiDec has suggested that the price of Solana (SOL) could potentially drop to double digits. This prediction comes as market participants prepare for a significant decline in the cryptocurrency's value. SiDec highlighted key levels to monitor for potential entries, providing insights into the current market dynamics and future price movements.

According to SiDec, the range between $136 and $143 is a major resistance zone for the Solana price. This zone is crucial as it contains multiple technical confluences, indicating a potential reversal or strong reaction. SiDec advised that this range is an ideal area for short positions, especially if the price begins to show signs of weakness. Conversely, a major demand zone is forming between $102.1 and $98.50 on the downside. This zone also has multiple technical confluences, making it a high-probability long entry area. SiDec suggested that this zone offers a solid long opportunity for gradually scaling into positions as the price moves deeper into support.

SiDec noted that the Solana price has been in a slow uptrend over the past five days, after hitting a low at $112. The current price action resembles an ABC corrective pattern, which could indicate that SOL is setting up for lower prices. SiDec emphasized the importance of placing orders at key levels to increase the chances of catching the right move without overcommitting too early. He also mentioned that the $100 target coincides with the 200 Exponential Moving Average (EMA) on the weekly timeframe, adding further confluence to this strong support level.

For market participants looking to enter a short position, SiDec recommended laddering into the resistance zone to ensure better risk management and higher entry efficiency. He also suggested that starting small at $112 and increasing position size down to $98.50 ensures strong positioning in a high-confluence demand zone. Scaling into trades rather than committing at a single price increases flexibility, improves trade execution, and helps market participants adapt better to price movements.

SiDec's analysis indicates a short bias until the Solana price reclaims $143.80, with this level serving as a strong resistance zone for potential short trades. If the Solana price decisively breaks above $144, it would invalidate the short thesis and suggest a potential move higher toward $150. Conversely, a strong rejection from the resistance zone would likely accelerate the move toward $112 to test demand at the swing low.