Solana, one of the largest smart contract platforms, continues to stand out with its robust ecosystem. However, the general market downturn has significantly affected it. While on a journey for a new ATH, sales started on March 20, forcing both Solana-based meme coins and SOL Coin price to pause their rally. So, what are the current predictions?
Solana (SOL)
As this article is being prepared, the Bitcoin price is finding buyers at $63,375 and SOL Coin at $135. The negativity that gained momentum last week has deepened the downward outlook. The RSI dropping below the neutral zone brought with it the potential for overselling. If the Bitcoin price starts a new test below $60,000, SOL Coin investors might quickly respond with sales.
On the other hand, the Sharpe ratio, which reduces the chance of price recovery, is another notable detail. This data is a measure of risk-adjusted return calculated by dividing a investment’s excess return by its standard deviation. Lower values definitely indicate a weak reward ratio for investors.
With a Sharpe Ratio of -4.27, at its lowest level in the last four months, the lack of investor appetite is already extreme, potentially pushing the sharply risen price to double-digit declines.
What Will SOL Coin’s Price Be?
Hovering in the $134-135 range, the SOL Coin price has been unable to escape the ascending triangle formation it has been moving in for about 15 days. While the Altcoin is gradually and steadily declining, a death cross is forming on the chart. This bearish signal, also known as a death cross, occurs when the 50-day Exponential Moving Average (EMA) falls below the long-term 200-day EMA.
It usually becomes evident during major sales. Although it may not predict the downturn precisely, it tells investors that the sales will deepen, the sentiment of rise will reverse, and this will happen quickly. If the signal proves accurate, SOL Coin’s price could lose the $126 support and potentially drop to the $100 and $85 levels. However, a quick rebound from the bottom could keep the price in an upward trend with closures above $85.
