Solana Price Prediction as SOL Drops 10% in a Week – What’s Going On?
SOL has dropped to $170.92 today, with the Solana price losing 2.5% in 24 hours and 10% in a week.
Despite these falls, SOL remains very strong in the medium and long term, with its price up by 15% in a month and by a hefty 740% in a year.
It therefore seems likely that, as with the wider market’s dip, this week’s losses are more a temporary correction than a sustained loss of momentum.
And with the market gearing up for April 20’s Bitcoin halving, we could see the Solana price rally again before long.
At the moment, SOL’s chart gives the impression that it will have to fall a little further before it can pick up again.
Its relative strength index (purple) has dropped from nearly 70 a couple of days ago to about 35 today, and it may have to drop below 30 before things correct upwards.
Its 24-hour trading volume is still relatively low (for Solana) at $2.9 billion, suggesting that demand remains a bit low.
Yet lower liquidity can often create the grounds for big jumps, and given how bullish SOL has been over the past few months, an imminent surge could be just around corner.
It’s worth pointing out that SOL witnessed positive digital fund flows in the week to April 8, according to CoinShares, in contrast to Ethereum and other alts.
This could mean that we may be on the brink of a recovery, with the approach of the aforementioned BTC halving likely to be a catalyst for a market-wide push.
Having said that, some analysts are advising caution in the near term, which is sound advice in view of how often crypto is home to ‘buy the rumor, sell the news’ events.
Less than 10 days to go before the #Bitcoin halving.
We may chop around a little longer, but historically – the halving event has led to major rallies.
Be patient and the rewards
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