Today, the price of Solana has dropped by 12%, bringing it down to $177. This comes at a time when the whole cryptocurrency market has lost 8% in the previous twenty-four hours.
In spite of this loss, SOL has been seeing recent success, which means that it has increased by 17.5% over the last week and by 59% over the past month. Additionally, the alternative cryptocurrency has seen a gain of 720% over the course of the past year.
Because of these rises, it has sufficient momentum over the medium term to recover from the slump it has had recently, which presents an excellent chance to purchase it at a reduced price.
As the market continues to heat up over the next few months, it is still 32% down from its all-time high of $259.96, which indicates that it still has the potential to make some significant gains.
The price of Solana is predicted to drop by 12% in the next twenty-four hours. What is going on here?
Over the course of the weekend, the market engaged in a round of profit-taking, and the chart of SOL indicates that the coin is prepared to recover from this trend.
Specifically, Solana's Relative Strength Index (RSI) has started climbing towards 40 today, after dipping below 30 over the weekend. This is an indication that the market has oversold it in comparison to the swings that have occurred recently.
In light of the fact that the price of Solana has dropped by a significant amount over the course of the last few days, it is completely possible that it may climb back up by a significant amount in the days or weeks to come.
SOL's chart has a number of fascinating characteristics, one of which is that its price has already rebounded off the 200-day average (blue), which may be an indication that it has already reached its bottom.
An further argument that can be made is that the robust volume of SOL, which now stands at $12 billion, will prevent its price from dropping too much. This is because the currency will not have a difficult time finding buyers for all of the investors who have been wanting to take gains over the last few days.
Taking into account the most recent transfer statistics, it would seem that a greater number of investors, including whales, would take gains in the less distant future.
On the other hand, the medium- and long-term forecast for the price of Solana continues to be quite favorable, both in terms of the overall market and in terms of SOL itself.
In the first place, a number of experts believe that the market has entered a bull period, which would mean that there would be more increases across the board, especially as we get closer to the next Bitcoin halving.
In the second place, SOL is one of the most powerful alternatives in terms of its fundamentals. The Solana network is now responsible for a total value that is locked in at $3.77 billion, and it is gaining use via the use of meme currencies and NFTs simultaneously.
As a result of these factors, the price of Solana is anticipated to exceed $200 once again during the next few weeks, rising to $250 by the time summer arrives.
