Just how far could Solana’s price tumble in this brutal crypto correction? The once-darling of crypto has seen better days. SOL touched an impressive $294 all-time high back in January, but it’s been mostly downhill since. Currently hovering around $134, it’s shed over 50% from its November peak of $270.
The numbers aren’t pretty. A 37% nosedive in just 30 days has traders sweating. Sure, there was a 6% bounce in the last 24 hours, but that hardly inspires confidence when you zoom out. The memecoin mania that swept through Solana’s ecosystem ended in tears, wiping out a staggering $22 billion in value. The shift in long to short positions indicates growing bearish sentiment among traders.
Network outages haven’t helped either. Nothing kills investor confidence quite like a blockchain that occasionally… stops working. Add in concerns about SOL’s inflation rate and tokenomics, and you’ve got a recipe for further downside.
Some analysts are eyeing $50 as a potential bottom. Seems extreme? Maybe not. VanEck’s long-term outlook is downright apocalyptic, projecting a $9.81 price target for 2030. Ouch.
Brutal forecast: Solana’s $50 bottom might seem gentle compared to VanEck’s devastating $9.81 2030 price target.
On-chain metrics tell a similar story. Major holders are moving SOL off exchanges in droves. Network activity is slumping. TVL in Solana DeFi protocols keeps shrinking. If this downward trend continues, Solana could enter a full bear market period lasting several months or even over a year based on historical patterns. Developers aren’t as active. Institutional interest has cooled.
The broader picture doesn’t help. Rising interest rates, a stronger dollar, and SEC scrutiny create headwinds for the entire crypto market. Technical analysis shows SOL struggling below its 50-day moving average of $174.37, with an RSI of 39.87 signaling bearish sentiment.
Not all hope is lost, though. A potential Solana spot ETF approval could turn things around. The recent launch of Solana Futures ETFs (SOLZ and SOLT) might attract fresh capital. Improvements in network stability could rebuild trust.
The key question remains: will SOL hold vital support at $118, or are we headed for a painful visit to $50 territory? This crypto correction isn’t playing nice.
