The biggest competitor to Ethereum has managed to surpass it in some metrics in terms of network activity. The network that has become most popular with the concept of cheap and fast is Solana. However, it is currently experiencing difficult times in terms of price performance. The negativity in the general market sentiment has triggered the current weakness. So, what price is SOL Coin targeting?
Solana (SOL) Analysis
Today, the price, which experienced a drop of over 4%, fell below $154. At the time of writing, it is finding buyers at $152. The popular altcoin, which has fallen significantly below the breakout level, is currently trading below the 20-day EMA. Altcoins that fall below the 20-day average price signal rapid downward movements for bears.
The MACD data for SOL Coin also confirms that the selling pressure is increasing. The MACD, which tracks price strength, indicates that bears have taken control and the downward pressure will increase. The loss of $162 also confirms this.
Moreover, tomorrow’s Fed announcements and inflation data are causing bulls to be cautious with the concern of tests at lower levels. Since we have been frequently addressing the risks on the macroeconomic front for a while, I will not go into details here.
SOL Coin Price Prediction
The trend in futures trading is useful for understanding what relatively more professional traders are doing. We see a decline in open positions in SOL Coin futures trading. Since the beginning of June, 15% of positions have been closed. The total size of open positions for SOL Coin has decreased to $2.2 billion.
If open positions in futures trading are being closed and investors are refraining from opening new positions, this confirms the expectation of more sales. Investor sentiment has dropped below zero, and this on-chain metric indicates that the overall market sentiment for SOL Coin has weakened, with comments expecting further declines engulfing investors.
In summary, we may see surprisingly rapid declines on the SOL Coin front. If bears increase their strength as expected, dip tests could occur down to $135 and $129. Below that, there are levels of $107 and $98. The point where SOL Coin could make the deepest spike in extreme sales is estimated to be $88.
In the bullish scenario, $162 should be reclaimed, and the price should refocus on the $188 and $205 resistance levels. For now, BTC continues to stay below $67,000, and the outlook is negative.
