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Solana’s hype is slowly decreasing as the price has been dropping in the market for a long. Earlier, the Solana price had peaked at as high as $202 back in March, but the same has declined to $138.39 today. Its bullish performance in March was the best attempt it made to the all-time high target of $260.06, which has been unachievable for three years.
Though in the last 24 hours, a minor 1% recovery has been made in its price, the altcoin has a long way to go to maintain its position in the top 5 cryptocurrencies of the market.
Why Solana Price Migh Drop To $100?
Solana’s price was on the lower side for years, where it has crossed the $200 mark only once since the ATH years ago. That happened in the most bullish condition and seems a big challenge for now as the market is continuously dropping. In the week interval, the price is down by 8.57%. This drop comes as the network activity has been continuously declining. As a result, the last 24 hours trading volume has declined another 14% and is currently at $3,040,988,314, indicating the losing faith of investors.
The biggest threat to the Solana price is the increasing competition in the market. As explained by the former CEO of BitMEX, Arthur Hayes, Solana might not lead the base layer decentralized application in the upcoming years. Instead, he promoted Aptos as the next market leader instead of Solana.
BitMEX founder Arthur Hayes predicted in a video interview (38:25) that in the L1 competition, Aptos will flip Solana and become the number two L1. This will take one to three years, and he will reveal more details in September this year. https://t.co/t4bj4xCAB3
— Wu Blockchain (@WuBlockchain) June 17, 2024
The competition does not end here, as the layer2 blockchains are upgrading and covering a major portion of the market. The Ethereum layer2 is on the verge of leading the industry, offering faster transactions at low cost while maintaining high security. This continuity can flip the layer1 blockchain like Solana soon.
Based on the ongoing price and factors pulling Solana back, analysts predicted a dump where the Solana price might drop to test support at $116. As it is in consolidation, the risk is higher for such falls. However, as Solana’s price began to recover today, and if it crosses the resistance around $157, an upsurge can happen for this cryptocurrency this time.
Solana is currently in a correction phase within a broader consolidation range. If price falls below $127, it may retest the significant support level at $116
If SOL can break the $157 resistance level, it could move towards the next target at $188 pic.twitter.com/guB7Uld3xP
— LaCryptoLycus🐺 (@CryptoLycus) June 18, 2024
What’s Coming Next For Solana Price?
As per the technical indicators, Solana is in complete bearish trends today, where the Relative Strength Index (RSI) is 37.26, an indicator of the overselling of this crypto. Moreover, the MACD (12,26) is -5.04, another prominent sign of the active bears in the market. The same is the case with the other technical indicators like Stochastic(20,3), ROC(20), CCI(20), Williamson%R(14), etc.
Furthermore, the simple and the exponential moving averages on the intervals of 5,10,20,50,100 hint at the bearish side dominating the other. Based on these, the probability of the drop is higher than any recovery. Analysts believe the Solana price can drop as low as $102, following a similar decline from 18 March to 13 April.
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