As a seasoned analyst with over two decades of experience navigating the volatile crypto market, I’ve seen my fair share of bull runs and bear markets. The recent 2% surge in Solana price during Asian trading hours is a welcomed sight, but it doesn’t necessarily mean we’re out of the woods yet.
The price of Solana increased by 2% during Asian trading on Friday, now standing at $139.7. This upward trend suggests a bullish market recovery as Bitcoin aims to maintain its position above $60,000. However, it remains uncertain whether this dip is substantial enough to trigger a bottom formation, or if sellers are preparing to launch another attack and extend the correction that began in October.
How Far Could Solana Price Drop in October?
This week, the price of Solana experienced an unexpected drop, falling from $161.78 to a low of $133 on Thursday – representing a 17.72% decrease. This market correction seems to be connected to the escalating geopolitical conflict between Israel and Iran, which appears to have sparked a fresh downturn for many prominent altcoins.
At present, the price of SOL is attempting to challenge its 200-day Moving Average as resistance, which may lead to an increase in selling activity, potentially halting the market’s rally. Moreover, a possible bearish intersection between the 20 and 50-day moving averages could intensify this selling pressure, further strengthening the downtrend.
As reported by The Block, there’s been a recent drop in the number of new addresses on the Solana blockchain down to approximately 3.36 million. This decline suggests a potential decrease in blockchain usage and user interaction, lending support to the bearish outlook.
If purchasing pressure continues, it’s possible that the Solana price might decrease by approximately 14%, potentially reaching the $220 support level in October. This significant support is reinforced by the lower boundary line of the flag formation pattern.
SOL Price Hints Major Reversal Within Flag
Testing the Solana price at a flag formation has proven beneficial for buyers, allowing them to amass more of this asset. In the past, such tests at this support level have typically sparked a 60% increase on average for SOL.
As a crypto investor, I’ve noticed an uptrend in the Total Value Locked (TVL) for Solana, reaching a staggering $5.12 billion as per DeFiLlama. This surge in TVL indicates a growing trust from investors and a significant influx of capital into Solana’s DeFi sector. This could potentially enhance the network’s worth even more.
Additionally, cryptocurrency platform Upbit has launched a new SOL/SGD trading option, making it simpler for Singaporean investors to trade Solana using local currency pricing. This action may boost trading activity, improve Solana’s liquidity, stimulate increased adoption in Singapore, and fortify its global standing.
Therefore, the forecast for Solana’s price suggests a stronger possibility of a bullish recovery, potentially aiming to surpass the resistance level set by the flag at approximately $180.
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2024-10-04 17:25