Solana (SOL), once a standout performer among mega-cap altcoins, has experienced a notable downturn, hitting a 30-day low of $79 during the past 24 hours. This decline comes amid a broader market downturn for altcoins, prompting crypto investors to reassess their portfolios. What to expect for Solana (SOL) price?
Solana Price Analysis: 2 years all-time high
Solana had positioned itself as one of the top-performing mega-cap altcoins in the lead-up to the spot Bitcoin ETF verdict. However, since reaching a 2-year peak of $121 on December 26, its price has witnessed a downward trend, raising concerns among investors.
Why is Solana Crashing?
While the Solana network continues to show robust growth metrics, including increasing network usage and daily active users, its price has slumped to $79 marking about a 20% loss within the week most of which happened in the earliest hours today.
The total market capitalization of all crypto assets excluding Bitcoin (BTC) and Ethereum (ETH), reveals an 8% downtrend between January 14 and January 22. With the global altcoin market shrinking by $32 billion in the past week, SOL, as the 8th largest cryptocurrency, has been disproportionately affected.
Investor Behavior towards Solana (SOL) Decline
Solana investors in the derivatives market are closing out positions in anticipation of further price declines. Open interest data reports $226 million decrease since January 17, signaling growing disinterest among investors.
Solana Price Prediction: Will Solana CRASH?
Drawing insights from derivatives and market data, a bearish outlook is predicted, with SOL potentially dropping towards $75 in the coming days. Bollinger bands technical indicators suggest a downward trend, emphasizing that investors are currently willing to pay less for SOL than 20 days ago.
What will Happen to Solana? Bulls and Bears
On the upside, a bullish reversal could occur if SOL surpasses $95, though the 20-day Simple Moving Average of $95 might pose a significant resistance. Investors holding unrealized losses over the last 20 days could exit at this point, impacting SOL’s upward momentum.
With Solana (SOL) decline today to $79 and re-adjusting fast to surpass $80, the $75 remains a closer level than the $95 statistically, but that will also mean that it will be down by almost 40%, will it be possible? The future hours will be crucial.