Solana Price Prediction: Will Solana Crash in June 2024?

Solana (SOL) is making big changes to improve its network and market strength. The Solana Foundation is working to make the network fairer, which, along with current market trends, makes us wonder about its investment potential. This article looks at the Solana price prediction and will it crash in June. 

How has Solana Price Moved Recently?

As of today, Solana (SOL) is priced at $143.79, with a 24-hour trading volume of $4.44 billion and a market cap of $64.62 billion, giving it a market dominance of 2.65%. In the past 24 hours, the SOL price has dropped by 2.69%.

Solana's highest price was $259.52 on November 6, 2021, and its lowest was $0.503701 on May 11, 2020. Since its all-time high, the lowest price it hit was $8.12, while the highest price since then was $208.75. Currently, the sentiment around Solana's price prediction is bearish, and the Fear & Greed Index is at 74, indicating greed.

Solana's circulating supply is 449.40 million SOL, out of a maximum of 533.68 million SOL. The yearly supply inflation rate is 12.82%, meaning 51.08 million SOL were created in the past year.

Why is Solana (SOL) price down?

The total value locked (TVL) in the Solana ecosystem experienced a notable decline in May 2024. In May, the TVL had dropped to 27.68 million SOL, down from a monthly high of 29.49 million SOL. This decline accelerated after the May 20 news about the potential approval of spot Ether ETFs, with TVL at 28.34 million SOL on that day. This suggests that the announcement regarding Ether ETFs may have contributed to the outflows from Solana's ecosystem.

This significant decline in the total value locked (TVL) within the Solana ecosystem, dropping from 29.49 million SOL to 27.68 million SOL in May, likely contributed to the decrease in SOL's price. The accelerated outflows following the news on May 20 about the potential approval of spot Ether ETFs suggest that investors may have redirected their assets, leading to reduced demand and downward pressure on SOL's price.

Will Solana Price Crash in June 2024?

Solana (SOL) has demonstrated an exceptional performance over the past year, with its price surging by 859%. This impressive growth has allowed it to outperform 95% of the top 100 crypto assets, including major players like Bitcoin and Ethereum. Moreover, Solana is trading above its 200-day simple moving average, indicating a sustained upward trend. Its market performance remains robust, evidenced by its positive returns compared to its token sale price and high liquidity, with a market cap of $64.62 billion and a 24-hour trading volume of $4.44 billion.

Despite these strong fundamentals, the sentiment around Solana’s future price is currently bearish. Over the past month, Solana has only seen 12 green days, accounting for 40% of the time. This indicates a degree of volatility and uncertainty in the short term. Additionally, the Fear & Greed Index stands at 74, which falls into the "Greed" category, suggesting that the market could be overheated and might be prone to corrections.

The yearly supply inflation rate for Solana is 12.82%, with 51.08 million SOL created in the last year. While this inflation rate is relatively high, it is important to consider it in the context of Solana's overall market dynamics and demand. High inflation could exert downward pressure on the price if not matched by equivalent or higher demand.

Trading above the 200-day simple moving average typically signals a bullish trend. However, the fact that Solana has had only 12 green days in the past 30 days could suggest that the market is experiencing some consolidation or minor corrections after substantial gains. The high liquidity of Solana supports stability, reducing the likelihood of dramatic price crashes under normal market conditions.

Given Solana’s historical performance and current market conditions, several factors suggest resilience rather than a crash: an 859% increase over the past year showcases robust demand and investor confidence; beating Bitcoin, Ethereum, and 95% of the top crypto assets indicates a strong relative market position; trading above the 200-day simple moving average supports a longer-term bullish trend; and high liquidity provides a buffer against severe price drops. 

However, the bearish sentiment and the market's "Greed" status imply that caution is warranted. Market corrections or periods of consolidation are normal, especially after significant rallies. While a dramatic crash in June 2024 seems unlikely given the current data, a period of volatility or a moderate correction is possible, especially if broader market conditions turn negative or if there are unforeseen negative developments specific to Solana.

Is It Time to Buy Solana?

The decision to buy Solana (SOL) depends on your investment strategy and risk tolerance. Short-term indicators suggest caution due to bearish trends and neutral oscillators. However, long-term indicators and crucial support levels hint at potential future growth, suggesting that current prices might be a buying opportunity for long-term investors.

If you have confidence in Solana's long-term potential and its ability to exceed previous highs, now could be an opportune time to invest. Conversely, short-term traders should wait for clearer buy signals before entering the market. It's essential to stay informed and analyze both technical indicators and broader market trends when considering an investment in Solana.