Solana (SOL) Price Projection: Will SOL Evade a Backslide to $100 in May 2024?
Over the past fortnight, Solana validators have withdrawn approximately $1.9 billion worth of SOL amidst a downturn in the market. This withdrawal, coupled with network congestion and dwindling demand, led to a significant drop in SOL's value, which hit $118.72 on May 1, marking a 41% decline in April alone.
According to #StakingRewards data, SOL staking deposits have decreased from 378.5 million to 362.6 million SOL, reflecting the aforementioned $1.9 billion withdrawal. Moreover, Solana's transaction failure rate surged past 60.5% on April 30, adversely impacting various DeFi, Memes, and NFT projects. This starkly contrasts with Solana's initial promise of swift and efficient transactions, prompting validators and #DEFI investors to divest their SOL holdings and explore alternative options.
The current trajectory suggests that SOL's decline has been primarily driven by the massive unstaking of validators. With network congestion persisting, there is a looming possibility that SOL could plummet to $100 by May 2024.
Technical indicators further reinforce this outlook. SOL is currently trading below the lower Bollinger Band limit at $124, indicating a prevailing bearish sentiment. With minimal support levels in place, SOL faces the risk of breaching the $100 mark.
Nevertheless, there is a glimmer of hope as the Relative Strength Index (RSI) approaches oversold territory at 32.6. Should prices dip to around $110, there is potential for a rebound, with a possible uptick towards $150.
