The price of Solana has experienced a significant decline after reaching an all-time high of nearly $300 in January 2025. Despite recent market recoveries, the current price remains over 45% lower than its peak, underscoring the challenges faced by this altcoin in recent times. A cryptocurrency analyst has warned that Solana’s price could drop even further, forecasting a potential 40% decline.
Crypto analyst The Alchemist Trader has identified the formation of a rare bullish harmonic pattern on Solana's price chart. While this pattern typically indicates bullish potential for digital assets, the altcoin must first overcome several short-term obstacles.
A key aspect of this bullish pattern is the initial liquidity sweep of previous lows. Currently, Solana's recent low is around the $95 mark, representing a 40% decrease from its current price, which is above $150. This potential for a low sweep is highlighted by several technical indicators on the chart.
The analyst points to the Point of Control (POC) Battle as a significant technical factor. Solana's price is currently testing this POC level with low momentum, as evidenced by a slow increase over the past few days. Additionally, there is notable resistance at the Value Area High and the 0.618 Fibonacci level, which is just above $163. The completion of the C-leg of the wave could see prices drop to as low as $95, especially if the resistance is not convincingly surpassed. A rejection at this level could trigger the anticipated 40% crash to $95.
However, not all news is negative. The bearish phase within this rare bullish harmonic pattern is expected to be temporary and may lead to a stronger upward movement thereafter. According to the analyst, the predicted drop to $95 will only occur in the short term and does not undermine the overall bullish trend.
Once the D-leg concludes and the correction is realized, the analyst forecasts that Solana's price will begin to rise again. From the anticipated lows of $95, a rebound of over 100% is expected, potentially pushing the price back up to $200 and beyond before the rally concludes. The analyst advises traders to remain vigilant for signs of rejection at current resistance levels or, alternatively, a volume-supported breakout above the value area high, which would invalidate the harmonic setup.
