Solana (SOL) Faces 25% Decline in a Week: Is Another 50% Drop Imminent?
Solana's price has sharply dropped, raising concerns among investors about a potential further decline as predictions suggest a drop below $100 could occur.
The cryptocurrency landscape has been challenging recently, with many digital currencies experiencing significant downturns.
Solana (SOL) has fallen victim to these trends, witnessing a drop of 25% over the past week. Analysts are speculating that this might just be the beginning for Solana as bears seem to be regaining control.
Potential Major Drop?
A recent fall brought SOL down to around $95, its lowest point since February 2024. Currently priced approximately at $96, this reflects a drastic decrease from its peak of nearly $300 about a year ago.
Concerns are mounting that the cryptocurrency could see further declines in the near future. Ali Martinez, for instance, has suggested that SOL might plummet to as low as $74.11 and possibly $50.18.
The analyst, known on X as curb.sol, emphasized that the $100 mark is a crucial threshold for the cryptocurrency. According to them, maintaining this price could herald a new bullish phase, while falling below may result in a drop to approximately $50 later this year.
Alex RT₿ has also voiced concerns, musing that the price could dwindle to between $70 and $80 if SOL doesn’t hold the $90 support line.
Is There a Chance for Recovery?
However, some analysts assert that the current prices could offer favorable buying opportunities. A user on X known as Lucky informed their nearly two million followers, “if the market behaves well, this could be a smart entry.”
Opportunities like this don’t show up often.
— Lucky
Mookie recently declared their intention to invest heavily should SOL drop below the $100 mark, stating, “if $SOL drops below $100 I’m going all in.”
Additionally, technical indicators signal that a bounce back could be due. SOL’s Relative Strength Index (RSI) has dipped significantly below 30, indicating oversold conditions and the potential for an upward trend. Indicators show that trading volumes have shifted, with outflows surpassing inflows, indicating a reduced selling impulse.
SOL RSI, Source: CryptoWaves
SOL Exchange Netflow, Source: CoinGlass
Conclusion
Skepticism and caution loom in the market as Solana navigates through turbulent waters, but could this also be the moment for savvy investors to take advantage of lower prices?
