From Highs To Lows: Solana’s Price Journey – Can It Recover From FOMO Fumble?
January 22 2024 - 4:45AM
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In a twist of fate, SOL, the native token of Solana, navigates
through a period of volatility after a robust bullish run that
spanned from September to December 2023. The once-surging token has
encountered a steady decline over the past three weeks, leaving
investors on the edge. Solana Meteoric Rise Falters Amid
Corrections Initially hailed for its remarkable performance, SOL
skyrocketed by an astonishing 500% since October 2023, with
December alone contributing a remarkable 105% gain. The surge was
largely attributed to the fear of missing out (FOMO) surrounding
Solana’s SPL token airdrops, where tokens such as Jito (JTO), BONK,
and Dogwifhat (WIF) played a significant role. Related Reading:
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Predictions However, the currents have turned since the dawn of the
new year. Recent weeks have witnessed a correction in SOL’s value,
shaking investor confidence. Excessive optimism regarding airdrop
expectations and delayed launches have contributed to this
correction, as the boost to decentralized applications (dapps)
proved short-lived. Solana currently trading at $88.4036 on the
daily chart: TradingView.com The decline in SOL’s value has been
evident, with the coin rarely surpassing the $107 mark in recent
times. On January 19th, SOL faced a 9% decline, plunging to a low
of $95. Analysts have observed a consistent rejection from the $100
level, further fueling investor caution. At the time of writing,
SOL was trading at $89.72, down 2.4% and 6.7%, respectively, in the
last 24 hours and seven days, data from Coingecko shows. Source:
Defillama SOL Faces Price Dip Amidst Growth While SOL’s token price
experiences a downward trend, there are positive signs of growth in
other aspects. Solana’s total value locked (TVL) in SOL tokens
reached an all-time high of 15.4 million on December 19th, 2023,
indicating a substantial 60% growth compared to the previous month.
Furthermore, Solana has demonstrated an increase in network
activity, particularly in transactions and volumes. Despite a
slight decline in transactions and active dapp users over the past
week, Solana’s dapps volume reached an impressive $594 million,
with a staggering 72.3 million transactions. Technical analysis
paints a mixed picture for SOL’s future. While the token remains
above its 50-day and 200-day exponential moving averages,
suggesting a bullish sentiment, recent price action raises concerns
of a potential reversal. SOL’s relative strength index (RSI), on
the other hand, sits at 43.70, indicating a bearish market, while
the moving average convergence and divergence (MACD) stands at
55.50, pointing towards an upward trend. Related Reading: Is Tron
Toast? Network Activity Crumbles As Crypto Cools Off Initially,
analysts were optimistic, predicting a continued bullish run for
SOL in 2024, with price projections ranging from $250 to $300.
However, the general price dip observed since the beginning of the
year, coupled with increased selling pressure, has shifted control
towards the bears. $SOL Top is in. Will trade under $60 in 2024.
pic.twitter.com/AHH7I8KZug — Toni Ghinea (@ToniGhinea) January 19,
2024 A struggle between bulls and bears has ensnared investors. A
lot of people are just going to sit tight and see what happens
because of the resistance levels and the cautious market mentality.
It is worth mentioning that expert Toni Ghinea has predicted a
possible decline to $60 by the end of 2024, which might intensify
the negative sentiment around the SOL market. Featured image from
Shutterstock
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