Solana price remains under pressure and is now hovering near its lowest level since January 2024. SOL token was trading at $86.75, down sharply from the all-time high of $295, a move that has erased billions of dollars in value. It has formed a large head-and-shoulders pattern, indicating further downside in the near term despite its strong fundamentals.
Solana Price Prediction: Technical Analysis Points to More Downside
The three-day timeframe chart shows that Solana’s price has come under pressure in the past few months, falling from a high of $294 in January last year to the current $87.
A closer look shows that the coin has moved below all moving averages and the Supertrend indicator, a sign that bears are in control. It has also moved below the 61.8% Fibonacci Retracement level at $117.
Most importantly, the coin has formed a giant head-and-shoulders pattern whose neckline is at $117, the 62.8% Fibonacci Retracement level.
Therefore, the most likely scenario is that it continues to fall, potentially to the 78.6% Fibonacci Retracement level at $70. A move below that level will point to more downside, potentially to the psychological level at $50.
On the positive side, a move above the psychological level at $100 will invalidate the bearish outlook and point to more gains in the coming weeks.
READ MORE: Bitcoin Price Prediction: Rare Candle Pattern and RSI Points to a BTC Rebound
Solana Has Strong Fundamentals
The ongoing Solana price crash is happening despite having some of the best fundamentals in the crypto industry.
For example, Solana has become the most active chain in the crypto industry, with its transactions soaring by 50% in the last 30 days to over 2.6 billion, far exceeding the combined transaction volume of other chains. Ethereum processed over 71 million transactions, whereas BNB Chain and Tron processed over 476 million and 340 million, respectively.
Solana is also generating substantial fees in the network. It handled over $26.8 million, meaning that it is closing the gap with Tron, which made over $28 million in the same period. Tron had over 115 million active addresses, up by 95% MoM.
Solana is also beating other popular cryptocurrencies in the ETF market. Its ETFs have attracted over $2.94 million in inflows this year, whereas Dogecoin ETFs have attracted just $252k, while Ethereum and Bitcoin ETFs have shed over $149 million and $689 million in assets, respectively.
Solana’s primary risk is the ongoing crypto market crash, which has affected Bitcoin and other cryptocurrencies, including Ethereum and Chainlink. This crash has also led to staking outflows, which have dropped by 3 million tokens worth over $304 million. Its stakeholder ratio has dropped from 70% to 67.7%
READ MORE: Ethereum Price Eyes a Comeback Amid RWA Growth and Soaring Staking Queue
