Solana’s SOL has experienced significant declines, dropping nearly 40% this past month. Analysts expect further deterioration, with potential forecasts suggesting a price plummet below $10 soon.

Warning for SOL HODLers

SOL has been adversely impacted by a broader market slump, linked to renewed tariff discussions linked to Trump. The price briefly dropped to around $77 before recovering slightly to above $80, marking a daily loss of about 6%.

SOL Price Image Source: CoinGecko

Analyst Ali Martinez observed that the “super trend indicator” is signaling a sell on the monthly chart, a pattern reminiscent of a 95% drop back in January 2022. A decline of such magnitude would suggest a fall to approximately $4.

Martinez also cautioned about the $76 support level; breaking below could lead to further downturns to $53, $35, and $23.

Short-Term Recovery Possibilities?

Despite the bearish outlook, some indicators, like the Relative Strength Index (RSI), hint at a potential rebound. A recent update pointed to an RSI level last seen in December 2022, when SOL traded around $8, prompting speculation about a possible bullish trend.

SOL Exchange Netflow Image Source: CoinGlass

Additionally, recent exchanges indicate a trend reversal in netflows, where outflows now surpass inflows, suggesting a shift in investor behavior that could precede price changes.