Is Solana Price Heading to $100 After Strong Market Corrections?

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As a seasoned researcher who has weathered numerous market storms and watched the crypto landscape evolve over the years, I can’t help but feel a pang of familiarity when observing Solana’s current predicament. The breach of the $200 support level is reminiscent of the ebb and flow that characterizes this dynamic sector.

The cryptocurrency Solana has surpassed its $200 support threshold following the recent dip in Bitcoin‘s value below $100,000. Although Solana has been showing exceptional growth, comparable to an “Ethereum-killer,” the fall below a significant marker indicates that a period of correction might be underway. Given the bearish market structure and indications from on-chain data pointing towards more declines, there’s speculation that the price of Solana could potentially drop down to $100 due to selling pressure.

Will Solana Price Break Below $100 After Losing Key Support?

The cost of Solana has fallen beneath the $200 resistance point, sparking worries it might plummet to $100. This decline coincides with a broader crypto market slump triggered by the latest Federal Open Market Committee (FOMC) gathering.

In the recent meeting, the Federal Reserve decreased interest rates by 0.25%, a move expected by the market. However, tension arose when Chair Jerome Powell suggested that no further rate reductions might occur until 2025. This announcement has caused a ripple effect in various markets, with cryptocurrencies also feeling the impact.

Bitcoin spearheaded the downturn, and other prominent cryptocurrencies followed in its wake, with meme coins taking some of the heaviest losses. Solana experienced a steep drop, plunging from $263 to around $180, representing a decrease of about 30%.

Currently, I find myself observing Solana’s (SOL) price holding steady at around $183, marking a 12% drop over the past 24 hours. This latest decline further fuels the general sense of pessimism in the crypto market.

In simpler terms, when the Relative Strength Index (RSI) stays less than 40, it suggests that the market is weak or oversold, possibly indicating further decline. As the RSI approaches 30, there could be increased selling activity.

As market adjustments continue, if the bearish trend strengthens, the predicted Solana price outlook indicates a possible decline to around $160. A more significant drop could see the token falling further to $140, and potentially even $100. On the other hand, should the bulls regain control, Solana may undergo a reversal, targeting the $200 resistance level or beyond.

On-Chain Data Reveals Risk of Correction for SOL

Based on Coinglass’s data, the trading volume for Solana derivatives increased by about 33%, reaching an impressive $18 billion. But at the same time, open interest decreased noticeably by 16% to settle at approximately $4.41 billion. This discrepancy hints at a rise in trading activity as market participants were modifying their positions.

According to the data from liquidations, it’s evident that traders’ feelings aren’t straightforward; they are simultaneously holding long and short positions. The SOL price fluctuations have been characterized by significant liquidation spikes, particularly during robust price shifts, indicating a high degree of volatility in the derivative market.

As a researcher, I’ve observed a bearish trend in Solana’s market, as data from DefiLlama indicates a significant drop in Total Value Locked (TVL). In just one day, the TVL dropped from approximately $11 billion to $7.93 billion, representing a 10% decrease. This downward shift, while not ideal, may be concerning for investors.

The cost of Solana could encounter growing stress due to industry-wide adjustments and negative trends. If the downward selling trend continues, it might dip to around $100. However, there’s still a chance for an optimistic turnaround if there’s increased support.

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2024-12-20 18:21