#Solana Price Forecast: 10% Week-End Drop in $SOL - What's Happening?
The price of Solana has fallen to $170.92 today, a 2.5% loss in 24 hours and a 10% loss in a week.
The medium and long term outlook for SOL is bright, nevertheless, since its price has risen by 15% in the last month and a substantial 740% in the past year, notwithstanding these declines.
Thus, it is more probable that this week's losses are a short-term correction than a long-term loss of momentum, similar to the broader market's decline.
We may see a return to the Solana price surge in the near future as the market prepares for the Bitcoin halving on April 20.
Currently, SOL's chart suggests that the stock has to decline a little further before it can start climbing again.
Its purple relative strength index has fallen from over 70 a few days ago to about 35 today, and it could need to go below 30 before it starts to rise again.
The fact that its 24-hour trading volume is just $2.9 billion is indicative of rather low demand, which is very low for Solana.
However, decreased liquidity is often the catalyst for large price rises, and considering the recent optimistic sentiment around SOL, a spike may be on the horizon.
Although Ethereum and other altcoins had negative digital fund flows in the week leading up to April 8, #SOL saw positive flows, according to CoinShares.
As the previously stated Bitcoin halving draws near, it is probable that a market-wide push will occur, which might indicate that we are about to see a comeback.
However, given the frequency of "buy the rumor, sell the news" occurrences in the cryptocurrency market, several experts are recommending caution for the immediate future.