Another rough day of news for Solana: SOL dropped 5% to $181, marking its lowest intraday level in weeks. With the ETF excitement fading, investors are asking: can SOL stage a comeback or will it sink further?
Solana’s struggles below $200 continued for the third straight week. Over the past week and month, the price of the 6th most valuable digital asset has crashed by 23% and 20%, respectively. This downtrend continued on Monday, Feb. 17 when the altcoin shed another 5% of its value during the Asian market session.
At the time of writing, SOL is trading around $184 – its lowest point in more than 30 days – implying that it has wiped out much of the gains made in the last quarter of the 2024 market rally.
But Why Is SOL Down today?
With no significant market-moving news or event having been reported over the weekend, the bearish momentum may be attributed to the fizzling Solana ETF buzz. While it may have helped SOL crawl up the $200 price level – albeit momentarily, it didn’t generate enough bullish momentum to sustain further uptrend.
Solana’s depressing price action can also be largely attributed to the lethargic mood dominating the crypto market. And it isn’t just affecting second-tier altcoins like Solana, it has had Bitcoin stuck below $100k while Ether keeps getting rejected at $2700. Historically, a bearish inclination of the crypto market has a disproportionate impact on altcoins as evidenced by Solana’s 23% crash over the last 30 days, compared to Bitcoin’s 6% dip over the same period.
Can Solana Rebound and When?
Yes, several fundamentals indicators hint at an eventual rebound for Solana. For example, given how the market reacted to SEC acknowledging receipt of Solana ETF filing, an approval of the same would spark a rally that possibly thrusts it to a new all-time high – possibly above $350.
It is also worth noting that Solana exchange outflows are on the rise – according to data from Coinglass. This implies that investors are moving their coins HODLing and transferring their coins off exchanges. It says they have no intention of selling at the current prices as they are confident of significant gains in the near future.
How high can SOL Get?
Over the longer term most forecasters and analysts are confident that SOL will eventually breach the $1000 mark. However, the journey here will start with a strong defense of the $200 mark by Solana bulls.
And while the volatile nature of the market makes it impossible to approximate when this will happen, it is clear that breaking above the current ATH of $$294 will be the first cue of Solana’s bull run.
