Solana (SOL) has been navigating turbulent waters in 2024, with significant price volatility and chart patterns suggesting potential further drops. As we move through September, traders are keeping a close eye on critical support levels, especially the $122 and $127 zones. This article combines recent price analysis and projections to explore whether Solana price will dip below $100 as some have expected and if so, what that might mean for its future.
Solana Price Struggles
Solana price movements have been concerning, especially after closing August 2024 with its second-worst weekly performance of the year—a 19.14% drop. This followed a steeper 25.19% decline in July. In recent weeks, Solana price has hovered dangerously close to key support levels, sparking fears of further corrections.
The derivatives market has seen a rise in Solana's open interest (OI) by 20%, coupled with a negative funding rate, signaling bearish sentiment. As futures traders increase short positions, this puts downward pressure on SOL. The funding rate has been in negative territory for over a week, marking its longest negative streak since October 2023.
Key Support Levels For Solana Price: $127 and $122
The $127 price point is a critical support level for Solana price. Since April 2024, the coin has dropped below this level six times but managed to bounce back. However, in September, the situation looks more precarious. Losing the $127 support would push SOL toward a significant liquidity sweep near $110. If bearish momentum continues, SOL could even test the $98-$104 zone, a crucial demand area. This drop would represent a 22% correction, marking a new lower low for 2024.
On the other hand, $122 remains another essential support level for the medium to long term. Historically, whales have identified $122 as a key price point, and any sustained drop below this level—especially for more than 5 to 8 days—could shift the entire market structure. A drop under $122 could signal further declines toward the $90 mark, where the next Fibonacci levels and rising trendlines may come into play.
Solana Price Analysis: Bearish Now, Bullish Later?
While Solana's price action in August and September appears overwhelmingly bearish, a deeper correction could set the stage for a bullish outcome in 2025. Analysts predict that if SOL experiences a drop in the short term, it could form a classic bullish cup-and-handle pattern, which may lead to a strong upward rally in 2025.
This theory hinges on SOL respecting its dominant chart structures and key Fibonacci levels. A short-term price drop to $90 would still keep Solana within these crucial zones, allowing the altcoin to regain momentum later. However, a deeper breach below these levels could signal a more prolonged bearish trend.
What to Expect For SOL Price in September and October 2024
September could be a make-or-break month for Solana price, with key support levels being tested and the overall crypto market experiencing continued uncertainty. Patience will be key as traders monitor these levels. If Solana price holds above $122, it might recover quickly in Q4 2024. However, if it drops below $100, a long-term bearish scenario could unfold.
October is expected to be a decisive month for the entire crypto market, including Solana. Traders should stay cautious and be prepared for further volatility as the market navigates this critical period.
