Solana Faces Bearish December, But Analysts Eye Potential $170 Surge
Solana's December chill has traders reaching for their charts—and maybe a warm drink. While the broader crypto market shivers through seasonal volatility, one analyst is cutting through the noise with a bold prediction.
The $170 Target: More Than Just Hopium?
Forget the short-term dips. The pundit's call for a move to $170 isn't pulled from thin air—it's a technical play. The logic hinges on key resistance levels and historical patterns, suggesting the current bearish pressure might just be a setup for the next leg up. It's the classic crypto narrative: fear now, FOMO later.
Navigating the End-of-Year Slump
December's bearish trend isn't unique to SOL. The entire sector often sees profit-taking and portfolio rebalancing as the calendar flips. Smart money watches these moves, looking for accumulation zones while everyone else panics about year-end statements. It's the financial equivalent of shopping the post-holiday sales.
The Verdict: Patience Over Panic
One analyst's bullish target doesn't guarantee a rally, but it highlights a crucial divide in market sentiment. While some see a sinking ship, others spot a buying opportunity before the next pump. In crypto, the biggest gains often go to those who can stomach the volatility—and ignore the doom-scrolling. After all, in a market driven by narratives, sometimes you just need one good story to change the tide. Just remember, for every 'genius' calling the bounce, there's a hedge fund manager quietly rebalancing into something boring like bonds.
Looking At The Historical Performance Of Solana In Q4
Taking into account data from the CryptoRank website, it shows Solana’s less-than-favorable performance in the last quarter. In the last five years, Q4 has had the highest average losses compared to the other quarters, and the month of December plays a major role in that due to how bearish it is.
December, in particular, boasts the second-highest average losses, second only to May’s -9.96% average. However, when it comes to the median returns, the month of December takes the cake, recording a high average of -19.6% losses over the year.
In the five years of its existence, only one year, in 2023, has the solana price closed out the month of December in the green with 71.4% gains. The other years have ended with at least 18% losses, and this month is already looking bearish with -0.79% losses so far.
With the months of October and November already closing in the red, it is likely that December will follow. The last time that both October and November closed in the red was back in 2022, and December WOULD follow suit with -29.6% returns for the month.
Analyst Says A Bounce Could Come Instead
While historical data suggests that the solana price could end up struggling this month, one crypto analyst has presented a scenario where the altcoin could bounce back. This move is predicated on Solana’s ability to actually hold the support and break the next resistance.
Interestingly, though, the analyst’s chart shows an initial 15% dump before the Solana price finds support somewhere around $116. After that, the price is expected to rebound, and the target for the cryptocurrency after this would be the $170 level. The weekly candlestick also supports this possible jump, something that would send Solana to the green in September.
For now, the bulls continue to struggle despite last week’s campaign for $150, suggesting that there is a great deal of resistance at this level. If selling continues to build up, then it is likely that Solana will move down as predicted.
