Solana Price Update: $SOL Sees 10% Weekend Decline - What's Behind It?
The price of Solana has dipped to $170.92 today, marking a 2.5% decrease over the past 24 hours and a 10% drop over the week. Despite these short-term declines, the medium and long-term prospects for SOL remain promising, with a 15% increase in the last month and an impressive 740% surge over the past year.
These recent losses are likely a temporary correction rather than a sign of long-term momentum loss, echoing the broader market's current trend. The upcoming Bitcoin halving on April 20 could fuel a resurgence in Solana's price as market anticipation builds.
Looking at SOL's chart, it appears that the stock may need to undergo further decline before initiating a climb. Its purple relative strength index (RSI) has decreased from over 70 a few days ago to around 35 today, potentially needing to dip below 30 before a reversal.
The relatively low 24-hour trading volume of $2.9 billion indicates subdued demand for Solana at the moment. However, decreased liquidity often precedes significant price surges, especially given the recent optimistic sentiment surrounding SOL.
Despite negative digital fund flows for Ethereum and other altcoins leading up to April 8, Solana witnessed positive flows, according to CoinShares. This, coupled with the impending Bitcoin halving, suggests a potential market-wide push that could signal a comeback.
Nevertheless, given the cryptocurrency market's tendency for "buy the rumor, sell the news" behavior, caution is advised in the immediate future, as noted by several experts.
