The latest Solana price predictions have left investors wondering whether the token will regain the all-time high of $295 it achieved last January before falling back to $146, weighed down by network outages and a broader crypto market downturn.
According to expert technical analysis from Coinglass, Solana and the entire crypto market are experiencing a significant decline amid what appears to be a bullish divergence. While there may be signs that SOL is poised for an upside rally, some investors aren’t sure of the factors affecting the token’s performance lately.
Effect of Trump’s Executive Order
Analysts believe the current crypto market downturn was triggered by feelings of being let down by the crypto community following President Donald Trump’s executive order to create a Strategic Bitcoin Reserve and fell short of offering a formula for buying more Bitcoin. As a result, Solana followed Bitcoin and all other altcoins in falling sharply to the extent of decreasing their important on-chain metrics. The token may have shown signs of recovery, but there’s fear that it could fall below $100 if the trend continues.
Data from Coinglass over the last 24 hours shows that Solana’s price experienced nearly balanced domination between buyers and sellers. The token faced a liquidation of at least $27.3 million, out of which buyers liquidated over $15.7 million while sellers closed at least $11.6 million worth of positions. During the same period, data shows that SOL went through a turbulent session after plunging 15% to sell at $114 thanks to the ongoing crypto market downturn, marking the first time Solana has fallen below the $134 price last achieved in May 2022.
All-Time-High of $295 in January
The ongoing Solana price fluctuations highlight the challenges the entire crypto market faces. Since SOL hit an all-time high of $295 on January 19, the token has struggled to regain that level, and the current price of $123 suggests a steep decline. The downturn, however, resonates with the rest of the crypto market, with analysts suggesting that in addition to external market factors, on-chain metrics indicate reduced investor activity.
Reduced on-chain activity
Data further shows that the Solana on-chain activity may have reduced alarmingly since network fees have plummeted by at least 73% during the last four weeks, highlighting reduced enthusiasm among users. Numerous Apps associated with Solana have also registered decreased activity, with Jito’s active user base declining by 56% during the last month, while the Magic Eden NFT marketplace recorded a 38% reduction in active addresses. All these figures raised red flags, showing that user engagement on the Solana network and others declined substantially during the review time.
Conclusion
Like all other cryptocurrencies, Solana has lost some substantial ground recently. Still, the course can be changed if stakeholders go out of their way to rekindle interest among leveraged traders, boost on-chain activity, and foster substantial investments from influential projects. As SOL navigates the troublesome waters, analysts and traders will watch closely to see whether the token will effectively skyrocket towards a renewed growth path.
Frequently Asked Questions (FAQs)
What are Solana’s short-term price predictions?
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Technical analysis indicates that if buyers defend support at $125–$130, Solana may rebound from its current price of $123 to reach approximately $140–$145. Otherwise, sustained selling pressure could lower the token to $115–$120.
Why is Solana dropping?
A combination of factors has contributed to the crash, such as Trump’s on-again, off-again trade war with China and the $1.5 billion hack of exchange Bybit.
What affects the price of Solana?
The future price of SOL depends on factors such as network adoption, technological advancements, and overall cryptocurrency market conditions.
Will Solana go up or not?
Based on price prediction inputs, the value of SOL is projected to increase by 5%, potentially reaching $138.65 by the end of this week.
Appendix: Glossary of Key Terms
Solana: Solana is a blockchain platform that hosts decentralized applications; SOL is its native cryptocurrency.
Price prediction: The art of using data analysis and algorithms to estimate the future price of an asset.
Technical analysis: A means of examining and predicting price movements in the financial markets using historical price charts and market statistics.
References
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
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