Solana Price Drops 5%: Will SOL Fall Down to $20 Again?
SOL has fallen by 5% in the past 24 hours, with the Solana price dropping to $103 amid a market-wide correction.
Today’s drop extends a largely unimpressive week for the alt, which has declined by 11% in the last seven days, with traders seemingly taking profits after a largely positive phase.
Indeed, SOL remains up by 18% in a month and by 300% in the last 12 months, making the altcoin one of the best-performing top-50 alts across these periods.
And with the market still likely to become more bullish as it approaches April’s Bitcoin halving, SOL looks on course to enjoy further gains in the not-too distant future.
SOL’s chart suggests that the coin may have to weather a short-term correction before it can properly pick up again.
Its indicators are taking a dive today, with its relative strength index (purple) – which is a measure of momentum – dropping below 50 a few hours ago.
This is a sign of growing selling pressure, with SOL’s 30-day average (yellow) also telling a similar story.
The latter has flatlined and begun dipping in the past couple of days, and given that it had been well above the 200-day average (blue) for several months, it is due a sustained fall.
What’s concerning for the SOL holder is that the coin’s current price is falling quickly towards its support level, in green on the chart above.
It will therefore be very instructive to see whether the Solana price can resist a fall below $100, which is key psychological support.
If it drops decisively below this level, it could spook more holders into taking profits (or cutting losses) and selling their coins.
In other words, SOL will have to endure more losses, even if it’s unlikely that it would fall all the way down to $20.
In the longer term, SOL’s overall
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