Solana’s price shows strong macro potential but has cushion space to fall further.
Solana’s price will moon one day
Solana is one of the cryptos you don’t want to sleep on. Since May 2020, the self-proclaimed Ethereum killer token rallied a jaw-dropping 500x, from $0.50 to all-time highs at $259.
The 500x Solana bullrun can be subdivided into three sets of impulse waves. Under the Elliott Wave principle, Solana established its first macro impulse, which shows strong optimism for future targets above $1,000 in the years to come.
Solana price currently auctions at $31.21 as the bears have taken over the trend since 2021, causing an 87% decline from all-time highs. In August, following a countertrend rally, the bears jumped back in the market, causing the SOL price to lose 30% of market value within a week.
Despite the positive macro outlook, traders should be hesitant to allocate their portfolio to the centralized smart contract token too soon. Based on the technicals, the Solana price could continue falling as low as $4 without invalidating the macro potential. Such a decline would result in an additional 87% decrease from today’s market value.
However, a breach above $48 could induce a short-term X-wave rally towards $200. Therefore traders should keep their eyes on Solana for a possible swing trade. If the $48 is breached, a safety stop can be placed under the most recent swing low. The current swing low is positioned at $29 but is subject to change if bearish market conditions persist.