In recent days, Solana (SOL) has seen a sharp drop in its price, raising concerns about the possible bursting of the bubble that led the cryptocurrency to reach a high of $126 on December 26, 2023.
Data from CoinMarketCap reveals an 8.7% decrease in price in the last 24 hours, placing it at around $80 at the time of writing.
This decline comes as part of a broader trend in the cryptocurrency market, with Solana appearing to be losing ground faster than its peers.
Weekly losses have exceeded 17%, suggesting that SOL selling might not be an isolated event, but rather a more sustained trend change.
In 2023, Solana recorded an impressive 700% year-over-year (YoY) growth, reaching a yearly high of $125.19.
However, the current narrative suggests that the Solana bubble may have burst, as long-time investors have had time to take profits after the rapid rise.
The situation is reflected not only in the price of SOL, but also in the meme-Coins on the Solana network, such as BONK and Dogwifhat
These coins, which experienced strong bullish rallies, are now facing intense selling pressure.
Amid this challenging scenario, some potential growth catalysts for Solana stand out.
One of them is the hope of a reversal in the bearish trend of Bitcoin, which is currently leading the fall of the altcoin market.
Additionally, the anticipation around Solana’s upcoming mobile update is generating optimism as it could attract new users and change the narrative for SOL in the medium to long term.
SOL price drop from an ascending support trend line that held for almost 100 days is evident.
Additionally, the breakout of a short-term symmetrical triangle and the drop below a Fibonacci support level add more concerns.
Technical indicators, such as the daily RSI, suggest a bearish reading, and analysts in the crypto space express a predominantly negative view on Solana’s future trend.
Some predict a price drop to $70, while others point to the loss of the uptrend since October as a worrying sign.
Despite these gloomy prospects, it is highlighted that the recovery of the triangle’s support trend line could mark the end of the correction.
In that scenario, SOL could see a 30% rise, reaching the next resistance at $115.
Solana faces significant challenges with its recent price crash, but recovery prospects are not yet ruled out.
Investors should take these technical analyzes and expert opinions into account when making decisions in the current volatile cryptocurrency landscape.