If Solana (SOL) respects support, particularly its 2024 trendline, its forecasted January 2025 drop might be a buy the dip opportunity.
RELATED – Crypto seasonality – buy the dip underway?
In this short article, we focus on analyzing Solana’s price chart.
No news analysis, foundational data, capability development, network evolution.
Only Solana price analysis for January 2025.
Solana price analysis for January 2025
The SOL price chart has a few messages, and they are very clear:
- The test of ATH provided resistance. First lower, then higher.
- The falling 2024 trendline might be tested, as some sort of breakout test but also test of support ($160 approximately).
- Readings above $122 remain very bullish.
This is the weekly chart, used in our Solana prediction research.
Solana breakout vs. breakdown
One thing that is very annoying in financial and social media is the usage of the words ‘breakout’ and ‘breakdown.’
Here is a correct usage in the context of Solana:
- SOL will break out on its longest timeframe once it clears ATH around $250.
- On the shorter timeframe, say medium term, SOL registered a breakout once it cleared the multi-quarter falling trendline, around $160.
- A true SOL breakdown will occur in the unlikely event it falls through $120.
All other usage of breakout and breakdown is confusing, arguably inappropriate.
How to know when to buy the dip in Solana?
Very simple – we refer to our article Can Bitcoin (BTC) Break Through $100k In January 2025:
- The timeline will be leading – the 2nd half of January is key.
- On the price axis, BTC has to respect the $87k to $91k area.
So, combining both insights leads to the conclusion that SOL will present a buy the dip opportunity in January 2025 in case BTC respects the $87k to $91k area, especially if it does so in the 2nd half of January.
Below are the 3 scenarios which highlight conditions for buying the dip in Solana:
- The most bullish outcome is for BTC to set a higher low in the $91k in this time period. Solana will be very bullish.
- The base case outcome is for BTC to consolidate in he $87k to $91k area. This will be bullish for Solana.
- The worst case outcome is for BTC to beak through support at $87k in which case Solana investors should wait for a recovery.
The market will bring clarity in the coming days.
