Solana Price Prediction as SOL Falls 9% Overnight – Are Investors Regaining Confidence?
The Solana price has dropped by 9% in the past 24 hours, sinking down to $98.69 after fears over another Bitcoin ETF delay pulled the wider market down yesterday.
Even with the sharp pullback, SOL remains up by 14% in a fortnight and by 64% in the last 30 days, with the altcoin also sitting on an impressive 611% increase in the past year.
And now that it seems as though things have stabilized, SOL may begin regaining its former momentum yet again, with the coin already up by 5% from its 24-hour low.
SOL’s chart leaves space for further falls before the coin corrects itself more decisively, given that its indicators had been in overbought positions for several weeks prior to yesterday’s tumble.
For instance, its RSI (purple) remains below 60 after peaking at around 85 on Christmas Day, with the indicator showing little sign of a clear improvement at the moment.
Meanwhile, SOL’s 30-day average (yellow) has remained substantially above its 200-day (blue) for a couple of months now, implying that a correction downwards is in order.
This could mean that yesterday’s pain will reoccur, and that the Solana price may wobble some more in the near term.
Having said that, the coin’s 24-hour trading volume remains high at around $5 billion, which is still well above the levels it witnessed even a month ago (between $2 billion and $3 billion).
Plus, its support level (green) has resisted significant falls in the past few weeks, so even if SOL drops in the short-term, it probably isn’t going to drop too far.
Its medium- and long-term prospects also look good, with the possibility of Bitcoin ETF approvals likely to send SOL flying even further, along with the market.
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