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Evaluating the Likelihood of Solana’s Price Dropping Below $100
Solana’s price has been struggling to maintain the $120 level, and with a potential for further decline, many are asking if it could drop below $100. After analyzing key market signals and sentiment factors, it appears that Solana might not stop at $102 – it may very well continue to fall, possibly even dipping below the crucial threshold of $100.
One factor contributing to this likelihood is the overwhelming bearish sentiment in the market. As we’ve seen, retail investors are leaning bearishly, with a crowd sentiment score of -1.15 indicating an increasingly pessimistic outlook on Solana’s future performance. This bears out a more negative tone among traders and investors, which may further exacerbate any downward pressure on SOL.
Another crucial element at play here is the disconnect between Solana’s price and market liquidity. The M2 Global Liquidity chart reveals that while global liquidity has been increasing, Solana’s price hasn’t kept pace with this growth. This disconnection may create a selling opportunity for institutional investors, which could trigger a further decline in price.
Recent events have also seen SOL slip below critical resistance levels at $155 and $160, as tracked by the Super VWMA and SuperTrend indicators. When Solana’s price falls beneath these levels, it often signals the start of bearish trends, paving the way for potential further downward movement.
Furthermore, the Alpha Quant Signal has consistently delivered short signals whenever SOL falls below the $155 mark. The fact that this signal remains negative highlights an ongoing build-up in downward pressure, suggesting Solana’s price could continue to drop if these unfavorable market conditions persist.
Additionally, we can’t ignore the Relative Strength Index (RSI) which shows a clear lack of buying interest and a strong selling momentum. As long as SOL stays below the 50 mark, it appears that sellers will continue to dominate the market.
Lastly, we’ve witnessed significant liquidation pressure in Solana since it reached $210. This 3-day Liquidation Heatmap highlights a strong trend of sellers taking control since then, with demand weakening significantly below $190. Without considerable buying interest, SOL could potentially drop further and may not stop at $102, but instead, slide down to the $100 mark.
In conclusion, based on these market signals and sentiment factors, it appears that Solana’s price is more likely than not to continue falling and possibly dip below the crucial threshold of $100.
Source: https://cryptonewsland.com/solanas-price-dropping-below-100/
