Solana Price Prediction: SOL likely to fall another 20% before buyers step in


  • Solana price has faced intense selling pressure around the $200 psychological level.
  • Technicals hint at another 10% to 20% correction on the cards for SOL.
  • Sidelined buyers could get a buying opportunity on the potential retest of $134. 

Solana (SOL) price has undone half of the gains noted in the past week as it trades below the $200 psychological level. This bearish outlook could lead to further corrections over the weekend or the next week.

Also read: Solana failed transactions exceed 70% as meme coin frenzy attracts bots

Solana price needs a breather

Solana price has shot up 1022% since September 2023. The two main reasons for this mind-melting rally are Bitcoin’s bull run and the overselling of SOL due to its connection with the now-bankrupt crypto exchange FTX. Last week, Solana soared 39%, registering the highest weekly gain of 2024. 

But in the past five days, Solana price faced massive rejection around the $200 psychological level and is currently trading nearly 16% lower than the previous week’s closing level. This correction is potentially aided by:

  • Bitcoin’s bearish outlook: BTC is crashing ahead due to the weekly sell signal. As profit-taking ensues, the pioneer cryptocurrency will likely take altcoins down with it.
  • Bearish divergence: The weekly SOL chart has spawned a higher high while the Relative Strength Index (RSI) has formed a lower high, indicating a non-conformity termed bearish divergence. This setup often signals a slowdown in momentum which leads to a potential reversal or a short-term pullback.
  • MRI's potential sell signal: The Momentum Reversal Index (MRI) has flashed a yellow down arrow, which spawns on the eighth consecutive up candlestick. This development warns that the next up candlestick for SOL would flash a sell signal that forecasts a one-to-four down candlesticks.

Considering the bullish market conditions, a reversal is unlikely, which suggests that SOL is in for a correction. Additionally, the bear market that began in early November 2021 saw a dead cat bounce to $200, which is where SOL is currently facing another sell-off. Therefore, the stable support levels where buyers might find Solana price attractive include the weekly foothold at $152 followed by $134, which is the midpoint of the previous bear market crash. 

Ideally a sweep of the $134 would be the best place for accumulation, but due to the extremely bullish outlook investors should note that this move would be have low probability of occurring. 

Read more: Meet the woman behind Solana hit meme coin ‘Doland Tremp’

SOL/USDT 1-week chart

SOL/USDT 1-week chart

On the other hand, if Solana price flips the $200 psychological level prematurely, the chances of an uptrend continuation are high. However, if Bitcoin price continues to shed, then SOL could follow in its footsteps.

A decisive weekly candlestick close below $134 would suggest a potential shift in trend. This development could attract weak hands to sell their holdings. If the panic sell-off has enough strength to push Solana price to produce a weekly close below $100, it would invalidate the bullish outlook.  In such a case, Solana price could crash 11% and revisit the $89 support level.

Also read: Slerf appeals for donors to make presale investors whole for the lost $10 million


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day

FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day

Floki Inu (FLOKI) has noted a spike in on-chain metrics in May. The meme coin rallied alongside large market capitalization meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF) and PEPE (PEPE) this cycle. 

More FLOKI News

Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies

Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies

Dogecoin (DOGE) and Shiba Inu (SHIB) decline on Tuesday amidst bearish on-chain metrics, as seen on Santiment. On the other hand, Bonk (BONK) price rallies amidst bullish technical indicators on its daily chart. 

More Meme coins News

XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55

XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55

Ripple holders shed their XRP holdings and took $20 million in profits since May 18. XRP social dominance is nearly at the same level, at 1.46%. XRP sustained above $0.52 on Tuesday but is down 1% on the day. 

More Ripple News

Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000

Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000

Bitcoin hovers around the $68,000 level on May 28, Tuesday as market participants brace for Mt.Gox transfers of BTC. The defunct crypto exchange’s wallet, tracked by on-chain intelligence trackers, have made BTC transfers to a new wallet. 

More Bitcoin News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP