SOL price prediction: In the wee hours of Tuesday morning, Bitcoin price slipped below a crucial support level, resulting in a market-wide crash that saw Solana’s price drop to $127.95. This is the lowest price SOL has reached since early May 2024.
The price of Solana hovered around $137 during European business hours on Tuesday, a 7.5% decrease in the last 24 hours, per CoinGecko.
SOL Price Prediction: Bulls Maintain Form Despite Selling Pressure
SOL price had previously been trending inside a symmetrical triangle. This type of market structure can resolve in either direction, but with some influence, has a higher probability of resolving in a given direction. Solana’s preceding trend was to the upside, which may be a major factor in determining how the symmetrical triangle resolves.
Solana’s price action is trending below the 50-day but above the 200-day simple moving averages (SMA), showing there may be some struggle between the bulls and the bears. While the 200-day SMA provides support, the 50-day SMA provides resistance. The former is expected to hold ground since it supports the uptrend.
A break to the upside from the symmetrical triangle may result in a 63% rally to $292. We can expect some resistance at the 50-day SMA ($157), $196, $228, and $267. On the flip side, a downward scenario may find robust support around $126. Fairly strong support levels also exist around $87 and $56.
Solana Trading Volume Rallies 153% Despite Market Crash
Despite the prevailing market conditions, the 24-hour trading volume of Solana skyrocketed by 153%, showing increased investor interest and a potential price surge soon.
This burst of activity on the network is supported by statistics, as the number of active addresses on the network hit an all-time high of 41.65 million in May. As of June 18, 2024, active addresses are already halfway to those of the previous month, per The Block.
Coinalyze shows that the aggregated Solana Open Interest (OI) has been falling since June 4, 2024, indicating that money has been flowing out of the asset. This metric is synonymous with the entire crypto industry, which has been experiencing a general drop in value. Nevertheless, SOL OI shows strong support around the $1.36B level, from which point money may begin flowing back into the asset once more.
#Crypto is down double digits, and #Bitcoin has been steady over the last 24 hours. How is the Crypto Fear and Greed Index still in Greed all this time? 🤷🏻♂️ pic.twitter.com/pKCfIOEJWW
— Jason Pizzino 🌞 (@jasonpizzino) June 18, 2024
Meanwhile, crypto users remain with question marks as the Bitcoin Fear & Greed Index indicates ‘Greed’ for over a month now, despite falling crypto prices.
Bottom Line
Solana price has showcased impressive resilience in the heat of a general market crash. Despite initially crashing 11%, the asset recovered quickly and maintained its bullish market structure.
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Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
