Key Events Needed for Solana Price to Hit Bottom

As the year 2024 winds down, Solana price has taken a steep decline, falling more than 30% since its peak in late November. Current technical indicators suggest a bearish trend, hinting at possible further drops shortly. Nonetheless, there are expectations of a recovery over the next few months. Here are the essential elements that could help stabilize Solana’s market value.

Has Solana Price Formed A Bottom?

Crypto analyst Trader recently highlighted a key pattern in Solana’s price movement. He pointed out an ascending triangle formation, suggesting potential upward trajectories. According to him, the $199 mark stands as a crucial resistance level. Flipping this hurdle into a support floor will suggest that SOL has formed a bottom and that its ready for a recovery rally.

Therefore, Solana price prediction hints that a breakout above the $199 threshold could trigger a significant rally to the upside, potentially revisiting $230. 

SOL Technical Analysis: Solana Struggles Amid Bearish Crypto Market Volatility

Solana price fluctuations continue as it trades below its 2021 peak of $260, with a record high at $263.83 in November 2024. Today, the latest SOL price has decreased by 2%, mirroring a broader decline in the crypto market, which saw a 1.63% drop in total market capitalization over the past day. Currently, SOL is at $193, hinting at potential recovery prospects for the upcoming year.

To regain bullish momentum, surpassing the $200 threshold is critical. If the market conditions improve, analysts anticipate Solana might approach $220 by early January. 

However, barring significant developments, it will oscillate between $190 and $200 shortly. Meanwhile, Bitcoin stabilizes near $93,000, supporting a more optimistic outlook for Solana, which has recently rebounded by 5%.

The Moving Average Convergence Divergence (MACD) shows a slight convergence, suggesting a potential shift in momentum. The Relative Strength Index (RSI), positioned at 43, indicates that Solana is neither overbought nor oversold, staying within a neutral range.

For Solana price to find its bottom, surpassing the $199 resistance level is crucial. Achieving this could signal a reversal of its recent downturn, marking the beginning of a potential recovery phase. This shift is vital for Solana to stabilize and regain upward momentum.