Here’s Why Solana Price Might Drop As Low As $100 Next; Analysts Take

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As an experienced analyst, I’ve closely monitored the cryptocurrency market and have observed Solana’s (SOL) recent price decline. The hype surrounding Solana has been slowly dissipating as its price dropped from a peak of $202 in March to its current level of $140.58. While there was a minor 2% recovery in the last 24 hours, Solana still faces an uphill battle to maintain its position among the top 5 cryptocurrencies.

The excitement surrounding Solana is gradually waning as its price has been declining in the market for an extended period. At its peak in March, Solana’s price reached a high of $202, but it has since dropped to $140.58 today. Its strong showing in March represented its best effort to reach the elusive all-time high of $260.06, a milestone that has remained out of reach for the past three years.

Here’s Why Solana Price Might Drop As Low As $100 Next; Analysts Take

In the past day, the altcoin has experienced a modest 2% price increase. However, it still faces an uphill battle to keep its spot among the market’s leading five cryptocurrencies.

Why Solana Price Migh Drop To $100?

As a researcher studying the cryptocurrency market, I’ve noticed that Solana’s price has remained relatively low for an extended period, with only one instance where it surpassed $200 since reaching its all-time high (ATH) several years ago. This occurrence took place under extremely bullish market conditions, making the current situation a significant challenge given the ongoing market downturn. Over the past week, the price has dropped by 6.43%. This decline comes as network activity has been consistently decreasing, leading to an additional 11% decrease in trading volume during the last 24 hours. The current trading volume now stands at $3,088,202,001, reflecting investors’ waning confidence in Solana.

The major risk to Solana’s price is intensifying competition within the market. According to Arthur Hayes, the ex-CEO of BitMEX, Solana may not hold the top spot for decentralized applications in the near future. Instead, he advocated for Aptos as the potential next market leader over Solana.

In a recent interview, Arthur Hayes, the founder of BitMEX, expressed his belief that the decentralized finance (DeFi) platform Aptos could surpass Solana and claim the number two spot among layer-1 (L1) blockchains within a timeframe of one to three years. He plans to disclose further information about this prediction in September of this year.

— Wu Blockchain (@WuBlockchain) June 17, 2024

As an industry analyst, I can tell you that the competition in the blockchain space doesn’t stop here. Layer2 solutions are advancing and capturing a significant market share. Ethereum‘s layer2 is on the brink of dominating the industry, delivering faster transactions at affordable costs while ensuring top-notch security. This persistent progression could potentially dethrone leading layer1 blockchains like Solana in the near future.

Based on current market conditions and the factors affecting Solana’s price, analysts anticipate a potential drop in which Solana’s value could reach as low as $116. Given its present consolidation phase, the likelihood of such declines is increased. However, if Solana’s price manages to surmount the resistance level around $157 during its recovery today, an uptrend may ensue for this cryptocurrency in the near term.

$SOL / $USDT
Currently, Solana is experiencing a correction within the larger price range of consolidation. Should its price drop below the $127 mark, it could revisit the noteworthy support level sitting at $116.
If SOL can break the $157 resistance level, it could move towards the next target at $188
— LaCryptoLycus (@CryptoLycus) June 18, 2024

What’s Coming Next For Solana Price?

From a technical analysis perspective, I observe that Solana’s current trend is bearish based on several key indicators. The Relative Strength Index (RSI) reads 38.41, indicating that the crypto has been oversold recently. Furthermore, the Moving Average Convergence Divergence (MACD) with fast EMA 12, slow EMA 26, and signal line 9 stands at -373.92, which is a significant sign of an aggressive bearish market sentiment. The same trend is also reflected in other technical indicators such as Stochastic Oscillator (20,3), Rate of Change (ROC) 20, Commodity Channel Index (CCI) 20, and Williams %R (14).

As a crypto investor, I’m closely monitoring the moving averages of Solana’s price chart. The simple and exponential moving averages on intervals of 5, 10, 20, 50, and 100 days indicate a bearish trend prevailing over the bullish one. Based on this analysis, I believe the likelihood of a further price drop is greater than any potential recovery. According to market analysts, Solana’s price could potentially plummet down to $102, mirroring the decline observed from March 18th to April 13th.

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2024-06-19 10:23