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Solana Activity Plunges as SOL Drops Below $100 for the First Time in a Year: What’s Next for SOL Price?
Solana’s recent price performance has been nothing short of catastrophic. The asset has plummeted below the crucial $100 mark, marking its lowest point since February 2024. This significant drop has led to a sharp decline in on-chain activity metrics, with various indices pointing towards a dismal future for the Solana ecosystem.
A brief glance at recent data reveals that active addresses have decreased from an impressive 3.52 million to a paltry 2.99 million over the past week. This drastic fall implies dwindling interest and demand in the asset, ultimately resulting in a bearish momentum that could potentially lead to further losses.
It’s essential to note that liquidations have reached unprecedented levels, with buyers surrendering approximately $67.2 million worth of SOL positions while sellers relinquished around $19.1 million. Furthermore, it appears that over 50 million dollars’ worth of SOL tokens are slated for release this week, which could further fuel the bearish momentum.
The current sentiment surrounding Solana is rife with fear and greed, as seen by a reading of 22 on the crypto fear and greed index. This grim outlook has led to an unprecedented drop in the asset’s price, leaving investors with a significant amount of red ink.
While it may seem bleak for SOL investors at this point, there are glimmers of hope that could potentially be leveraged. A push for the creation of a Solana ETF in the United States could bring about long-term support to the ecosystem, despite the chances of approval being less robust compared to other assets like Litecoin and Dogecoin.
As we navigate these treacherous waters, it’s crucial to monitor SOL’s price action closely. If buyers can successfully rally around the $100 mark and push the price above the critical resistance level of $110, there is a possibility that Solana could potentially rise towards an upper resistance zone at $135-$160. A successful breach of this point may restore confidence in the market and potentially lead to a surge towards $180.
However, should SOL fail to stay above the crucial $110 mark, it could face a more considerable decline, plummeting as low as $80 or even lower.
It remains to be seen how Solana will react moving forward. With an RSI of 39 indicating strong bearish momentum, investors would do well to remain cautious and reassess their positions accordingly.
Source: https://coinpedia.org/price-analysis/solana-activity-plunges-as-sol-drops-below-100-for-the-first-time-in-a-year-whats-next-for-sol-price/
