SOL Price Forecast: Will Solana Ever See $260 Record High Again?

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Over a turbulent weekend, Solana’s price tried to bounce back from its support at $120 on Monday but fell short of breaking through the $150 barrier. Investors endured significant losses during this time as cryptocurrency markets saw widespread liquidations, with those heavily invested in crypto feeling the most impact from the escalating conflict in West Asia. The global financial market was thrown into chaos by geopolitical tensions that emerged on Friday, leading to a massive sell-off in Bitcoin and other major cryptocurrencies like Ethereum, Solana, and XRP.

In contrast to the expected decline leading up to the 2024 Bitcoin halving, cryptocurrency prices demonstrated remarkable strength on Monday with modest gains. Solana in particular surged by 4.4%, reaching $142, contributing to a total market capitalization growth of 2.1% to around $2.5 trillion as reported on CoinGecko.

SOL Price Forecast: What’s Next As Solana Dumps On Monday

During US business hours on Monday, the optimistic view in the cryptocurrency market is becoming increasingly pessimistic. For instance, the price of Solana (SOL) has dropped from over $150 earlier in the day to around $142, marking a significant decline within the past four hours.

At a resistance level of $150, bolstered by the 0.618 Fibonacci ratio, there is a significant risk of another price drop to around $120. This possibility becomes even more likely given that the Relative Strength Index (RSI) has switched its direction and started to decline at a reading of 41.

If the stock price fails to close daily below the RSI trendline’s support or resistance level, it could potentially signal increased selling pressure in the upcoming trading sessions and possibly beyond.

SOL Price Forecast: Will Solana Ever See $260 Record High Again?

Over the coming days, the fate of SOL‘s price movement will become clear. If the $138 level, representing a 0.786% Fibonacci ratio, holds as support, it could lead to a rebound and potentially push Solana above $200 again in 2024. Keep an eye on other potential supports such as the ascending green trendline and last weekend’s significant buying activity at $120.

Solana’s DeFi TVL Tanks Pulling Prices Lower

Swiftly responding to the unexpected downturn in the cryptocurrency market, owners of SOL tokens promptly withdrew their deposits from smart contracts embedded in the Solana network.

According to Defi Llama’s statistics, the total worth of assets secured in Solana’s Decentralized Finance (DeFi) sector has decreased to around $3.71 billion from a peak of roughly $4.89 billion that was reached on March 30th.

Over the past two weeks, there’s been a consistent downward trend, suggesting increasing concerns about Solana’s future.

When the total value locked in DeFi continuously rises, it indicates that Solana token holders maintain a optimistic outlook for the long term. Consequently, they choose to forgo short-term gains and instead participate in securing the network through staking, all while pursuing greater price heights.

SOL Price Forecast: Will Solana Ever See $260 Record High Again?

When the total value locked (TVL) in a protocol decreases, it may indicate a less optimistic future perspective for the protocol and the related value. Keep an eye on potential increases in TVL as possible signs of near-term value expansion.

The possibility of SOL reaching its record-high price of $260 by 2024 hinges on the level of investor demand for the token and the broader market conditions following Bitcoin’s upcoming halving event this week.

With a second surge past the $200 mark, it’s expected that investors will feel a strong urge to join in, fearing they might miss out on further price growth (FOMO). This bullish momentum in Solana would then reinforce its strength and potentially lead to setting a new all-time high price for the year.

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2024-04-15 19:36