Solana (SOL) Price Analysis: Bearish Signs Point to Potential Correction to $100
Solana’s (SOL) price is facing bearish developments as investors lose interest and market cues point towards a potential correction. Dubbed as the “Ethereum killer,” SOL is likely to see a decline in the coming days, possibly dropping down to $100.
The influence of Bitcoin on Solana cannot be ignored, as the two cryptocurrencies share a high correlation. With Bitcoin experiencing a recent crash, SOL followed suit, and this trend is expected to continue. The correlation between the two assets stands at 0.8, indicating a strong relationship that could drag Solana’s price down further if Bitcoin continues to decline.
Adding to the bearish sentiment is the diminishing conviction of investors, reflected in the significant drop in Open Interest from $2.89 billion to $1.84 billion. This lack of confidence is evident as investors are hesitant to make bullish or bearish bets on the asset.
If the bearish cues persist, Solana’s price could see a considerable correction, potentially dropping by 24% to reach $100 from its current price of $132. However, critical support levels at $100 and $120 could prevent further losses and potentially lead to a rally towards $150 if SOL manages to bounce off these levels.
It is essential to note that this analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, so conducting thorough research and consulting with a professional before making any financial decisions is recommended.
