SOL has dropped to $170.92 today, with the Solana price losing 2.5% in 24 hours and 10% in a week.
Despite these falls, SOL remains very strong in the medium and long term, with its price up by 15% in a month and by a hefty 740% in a year.
It therefore seems likely that, as with the wider market’s dip, this week’s losses are more a temporary correction than a sustained loss of momentum.
And with the market gearing up for April 20’s Bitcoin halving, we could see the Solana price rally again before long.
Solana Price Prediction as SOL Drops 10% in a Week – What’s Going On?
At the moment, SOL’s chart gives the impression that it will have to fall a little further before it can pick up again.
Its relative strength index (purple) has dropped from nearly 70 a couple of days ago to about 35 today, and it may have to drop below 30 before things correct upwards.
Source: TradingView
Its 24-hour trading volume is still relatively low (for Solana) at $2.9 billion, suggesting that demand remains a bit low.
Yet lower liquidity can often create the grounds for big jumps, and given how bullish SOL has been over the past few months, an imminent surge could be just around corner.
It’s worth pointing out that SOL witnessed positive digital fund flows in the week to April 8, according to CoinShares, in contrast to Ethereum and other alts.
This could mean that we may be on the brink of a recovery, with the approach of the aforementioned BTC halving likely to be a catalyst for a market-wide push.
Having said that, some analysts are advising caution in the near term, which is sound advice in view of how often crypto is home to ‘buy the rumor, sell the news’ events.
Less than 10 days to go before the #Bitcoin halving.
We may chop around a little longer, but historically – the halving event has led to major rallies.
Be patient and the rewards will come. pic.twitter.com/wQbsL4CBpF
— Jelle (@CryptoJelleNL) April 10, 2024
But in the medium- and long-term, the Solana price is only likely to rise, with SOL being one of the strongest coins in the market in terms of fundamentals.
For instance, Solana’s total value locked in is now nearing $4.4 billion, representing a 1,400% rise over the past year, as more people flock to Solana for NFTs and meme coins.
Based on this, the Solana price is likely to reach $200 by the start of summer and break its ATH ($259) by Q4 2024.
Low-Cap Meme Tokens Bring Rally Potential
The only thing to be said against Solana is that, given its strong rallies over the past six months, it may rise more steadily this year.
So if traders want market-beating gains, they may have to turn to newer coins, of the kind that rally big as they list on new exchanges.
One coin with the potential to do this is Slothana (SLOTH), a Solana-based meme token that has raised over $10 million in its ongoing presale.
What’s impressive about this is that the sale has been running for only a couple of weeks, indicating that traders are very keen on SLOTH.
There are a couple of reasons for this, with one of the main reasons being that Slothana’s team also developed the successful Smog (SMOG) token.
The latter listed earlier this year and made big gains over its presale price, raising the possibility of something similar happening with Slothana.
It’s also encouraging that Slothana’s infectious use of sloth-related memes has helped it to grow its online community already, with its official X account now boasting more than 15,000 followers.
Given that meme coins live or die by their communities, this bodes well for Slothana’s future.
Investors can join its sale by going to the Slothana website and connecting a compatible wallet (e.g. Phantom, Solflare).
They can acquire the token at a rate of 1 SOL for 10,000 SLOTH, which amounts to about $0.019393 per coin.
Get ready to blast off with Slothana! We’re gearing up for launch and this is your last chance to grab your $SLOTH Don’t miss out on the action as we prepare to announce our official launch date. Watch this space. #slothana #memecoin
— Slothana (@SlothanaCoin) April 8, 2024
Lastly, it should be remembered that the past few months have been massive for SOL-based meme tokens (e.g. DogWifHat), with many rocketing up the charts.
The same could happen with SLOTH, at least when judging by the popularity of its sale.
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