Solana’s (SOL) price is showing signs of a downward trend, primarily due to broader market developments and diminishing investor interest. Experts also suggest that a correction could soon bring SOL down to $100, as Ethereum’s close competitor faces challenges.
Diminishing Interest in SOL
Solana’s price tends to follow broader market cues, whether it’s meme token frenzy or recent corrections. Bitcoin (BTC) has been falling over the last few days, and SOL has done the same, which could continue. This may be due to the high correlation between the two cryptocurrencies, which has strengthened since their divergence in March, currently at a level of 0.8.
Considering that Bitcoin is trending below its current trading price of $62,700, this could drag down Solana’s price. The declining interest in the cryptocurrency can be seen in the drop in open interest (OI) from $2.89 billion to $1.84 billion over four days. This $1 billion exit from the futures market shows that investors are not only cautious but also reluctant to make directional bets.
Support Levels in SOL
However, if the indicated downward signals determine price movements, Solana’s price could correct significantly. The altcoin, trading at $132, could extend its correction by another 24%, potentially bringing SOL down to $100. This critical support level might provide some support for Solana’s price, preventing further losses. Similarly, a strong support level has been marked at $120, and if SOL bounces from this level and begins to recover, the bearish thesis could be invalidated, potentially leading Solana’s price to rise towards $150.
