Price of Solana Drops by 5%, Falls Below 55 Dollars – What Comes Next?

Crypto News- Solana, a prominent Ethereum Layer-1 competitor, has experienced a consistent downward trend since reaching its peak for 2023 at $68.21 earlier in November. Over the last 24 hours, the Solana price has undergone a further 5% correction, sliding below the $55 mark at the time of writing.

The descent in Solana’s price is attributed to the broader market sell-off, with both Bitcoin and altcoins witnessing a decline. In the current correction phase, SOL has slipped below its 10-day exponential moving average (EMA) at $56.53, indicating a prevailing bearish sentiment.

Price of Solana Drops by 5%, Falls Below 55 Dollars – What Comes Next?

Despite this correction, the Solana price remains above its 50-day and 200-day EMAs at $43.25 and $29.51, respectively. Historical data indicates that SOL has encountered multiple pullbacks during its upward trends, often retracing to either the 38.2% or 50% Fibonacci levels.

As of now, Solana is priced at approximately $57, and there is potential for a bullish resurgence as long as it remains above the 50% Fibonacci level, situated around $42. If the bullish trend resumes, potential price targets include $78.2, followed by $100 and $121.75.

Crypto analyst @AltcoinSherpa expresses a bullish sentiment toward SOL, anticipating a correction and suggesting a favorable entry point below $50. According to @AltcoinSherpa’s analysis, there is a likelihood of SOL reaching triple digits in 2024.

Marouane Garcon, co-founder of The Real-World Asset Exchange, took a distinctive approach in analyzing Solana’s price drop, focusing on significant traders. Referring to data from Whale Alerts, Garcon noted that over 2.1 million SOL was transferred in three transactions, signaling major selling activity. This movement spooked retail investors into selling due to fear. While the exact reasons behind these token transfers remain undisclosed, some deductions can be made based on their destinations.

Solana’s active addresses have experienced a significant increase, reaching a six-month peak of 444.48k, according to on-chain data reported by ‘The Block.’ This surge in active addresses indicates growing interest and engagement within the Solana ecosystem, suggesting sustained demand for SOL tokens in the foreseeable future.