Solana (SOL) Analysis: Here’s How Bitcoin Could Drag the Price Down to $100

Analysis1mos agoUpdate 6086cf...
44 0

In Brief

  • Solana price will likely continue its 34% drawdown, potentially halting at $100, a critical support level.
  • SOL shares a high correlation with Bitcoin, and the lack of recovery in BTC price could negatively influence altcoin.
  • Investors have seemingly lost confidence as well, given that the open interest has plunged by $1 billion in four days.

Solana’s (SOL) price is showing signs of bearish developments primarily owing to the broader market cues and declining interest of investors.

By the looks of it, the “Ethereum killer” will likely note a correction in the coming days that could drag SOL down to $100.

Bitcoin’s Influence on Solana

Solana’s price tends to mostly follow the broader market cues, be it the meme coin frenzy or the recent correction. As Bitcoin (BTC) crashed in the last few days, SOL did, too, and this could continue going forward.

This is due to the high correlation that the two cryptocurrencies share. After dissociation in March, the correlation between the two assets grew stronger, with the same currently standing at 0.8.

Solana (SOL) Analysis: Here’s How Bitcoin Could Drag the Price Down to 0
Solana Correlation with Bitcoin. Source: TradingView

Thus, given Bitcoin is prone to further decline below the current trading price of $62,700, it could drag Solana’s price down.

Read More: 11 Best Solana Meme Coins to Watch in 2024

To make this worse, the investors aren’t optimistic about the asset. Their diminishing conviction is visible through the plunge in the Open Interest (OI). OI fell from $2.89 billion in the last four days to $1.84 billion.

Solana (SOL) Analysis: Here’s How Bitcoin Could Drag the Price Down to 0
Solana Open Interest. Source: Coinglass

This $1 billion outflow from the futures market indicates that investors are not only skeptical but also unwilling to make either a bullish or a bearish bet.

SOL Price Prediction: Decline to $100

Should the aforementioned bearish cues dictate the price action, Solana’s price could correct considerably. Trading at $132, the altcoin would extend the 34% correction noted since the beginning of the month by another 24% to bring SOL down to $100.

Since this is a critical support level, Solana’s price would likely find some support at this point, preventing further losses.

Solana (SOL) Analysis: Here’s How Bitcoin Could Drag the Price Down to 0
SOL/USDT 8-hour chart. Source: TradingView

Read More: Solana (SOL) Price Prediction 2024/2025/2030

A similarly strong support level is marked at $120, and if SOL manages to bounce off of it and engage in recovery, the bearish thesis would be invalidated. Consequently, Solana’s price could rally further towards $150.

Top crypto projects in the US | April 2024

This article is sourced from the internet: Solana (SOL) Analysis: Here’s How Bitcoin Could Drag the Price Down to $100

Related: Here Is Why PEPE Price Could Continue Breaking New All-Time Highs

In Brief PEPE gained more than 25,000 holders in just 2 weeks and this growth rate is not slowing down. Its price achieved new all-time levels. 86% of holders are now in profit. PEPE, the third biggest memecoin in the market cap, behind just DOGE and SHIB, grew by almost 800% in the last month. The frog coin is now almost topping the $3B market cap. Despite all this growth, can this trend continue? On-chain and Technical Analysis shows us that PEPE price could soon reach new all-time highs. PEPE Gained More Than 25,000 Holders The recent spike in PEPE holder base by over 25,000 within two weeks speaks volumes about the growing trust in the currency. This influx of new investors serves as a solid foundation for sustained upward…

 

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...