Solana has tumbled to a five-month low of $134, with its 15% decline today coming as the cryptocurrency market loses 10% in 24 hours.
SOL hasn’t escaped the market’s big selloff today, which comes as ETF outflows and tariffs suppress investor confidence.
And today’s fall means that Solana is down by 20% in a week and by 47% in a month, with the altcoin retaining a relatively modest 30% increase in a year.
Given the favorability of recent political and regulatory developments in the US, SOL shouldn’t stay down for too long, with its long-term price prediction remaining largely positive.
Solana Crashes to 5-Month Low – Will SOL Drop Below $100 Next?
There’s little doubt that Solana, along with 99% of coins in the market, has hit rock bottom today, with its technical indicators suggesting that it should rebound very soon.
Its relative strength index (purple) has plunged to 20 this morning, representing severe overselling.
Source: TradingView
We also see SOL’s 30-period average (orange) reaching a new low in relation to the 200-period average (blue), which again is something that should point to a strong rebound.
Of course, the key thing to watch is whether the alt’s resistance level(s) can hold up, with the next key level being $130.
If its price suffers a decisive fall below this level, we could witness another big drop for the token, which may potentially drop as low as $115 in the next week or so.
One alarming detail is that its trading volume has jumped to $11.6 billion today, reaching its highest level in over two weeks as traders look to exit.
The past 24 hours have also seen a couple of big SOL transfers, something which may suggest that whales are dumping.
As for when exactly the carnage will end, this is open to interpretation.
The technicals suggest that a rebound should happen very soon, while the fundamental situation remains largely positive, despite the upcoming March 1 unlock and tariff-related tensions.
Yes, ETF outflows have been steep this month (reaching nearly $1 billion), but crypto continues to benefit from positive developments.
The SEC recently dropped its case against Coinbase, while it also continues to acknowledge numerous crypto ETF filings, including applications for SOL ETFs.
As such, the Solana price should recover in time, especially when its native platform has the long-awaited Firedancer upgrade to look forward to this year.
It could return to $150 by Q2, and reach $250 by H2.
Presale Coins Can Help Weather Bear Market
As bad as things look for most major tokens right now, it’s still possible to make strong returns, assuming you know where to look.
And one promising direction is towards presale coins, which under the right conditions can surge strongly when they list for the first time, particularly when they’ve had big raises.
One of the biggest presales happening at the moment belongs to Solaxy (SOLX), a new Solana-based project that has raised more than $23 million in its ongoing ICO.
Solaxy has the distinction of being Solana’s first proper layer-two network, and as such it will provide users with faster transaction speeds and lower fees.
It will also enable instant bridging between itself and Solana, as well as adding compatibility with other chains at a future date.
Its speed and scalability will help it to become a significant hub for DeFi and meme coins, which continue to be a major attraction to the Solana ecosystem.
And within its platform, SOLX will serve exclusively to pay for transaction fees, meaning it could bring in plenty of demand.
Traders can join the SOLX presale by going to the Solaxy website and connecting a compatible wallet, such as Best Wallet or MetaMask.
SOLX is currently available for $0.001646, but this will rise several more times before the sale ends, and could rocket once the coin lists.
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