Solana’s price has dropped below $200 and risks losing hold on a critical support level.
Momentum has turned bearish as the token continues to face increasing selling pressure.
The 4-hour analysis reveals that SOL could find it challenging to bounce from the lows.
On Nov. 23, 2024, Solana (SOL) hit an all-time high of $263.83, sparking speculation it could reach $300 by year-end.
However, despite the optimistic outlook, SOL has since slipped below the psychological $200 level. This reversal aligns with a broader market downturn, which has seen the total crypto market decline by 7%.
Now, with SOL teetering near its current value, the question remains: how much lower could it go if market conditions continue to deteriorate?
Typically, this technical pattern indicates an extended decline as long as the price remains below the support line.
However, if the price rallies above the descending trendline, it could indicate a bullish breakout.
For SOL, the price is wobbling at $197.24, which is the same level as the support line of the falling channel. Amid this price action, the Relative Strength Index (RSI) has dropped below the 50 neutral level.
The decline in the RSI reading suggests that the momentum surrounding the token is bearish. If this trend persists, SOL could face further decline, with the next key support level around $181.35.
SOL Daily Chart | Source: TradingView
Outside of the technical outlook, SOL continues to face intense selling pressure. For instance, Pump.fun, sold 98,594 SOL, worth over $20 million, on Jan.7.
This sale came from its revenue, which totals approximately $428 million. If the token continues to experience such selling pressure, a rebound toward $200 may become unlikely in the short term.
SOL Price Prediction: Downtrend Not Over
The 4-hour chart confirms the thesis that SOL could continue to drop. One indicator backing this forecast is the Parabolic Stop And Reverse (SAR).
The Parabolic SAR is a technical indicator that identifies the price’s direction. By placing dots above or below the price, the indicator can tell whether the trend is bullish or bearish.
Generally, when the dotted lines of the Parabolic SAR are below the price, the trend is bullish.
However, in this instance, the dotted lines have risen above SOL’s value, indicating significant resistance above the current value.
Should this remain the case, the SOL price might slip below the $181.35 support and drop to $176.37.
SOL 4-Hour Chart | Source: TradingView
On the flip side, if SOL fails to drop below the 0.382 Fibonacci retracement at $194.25, this prediction might not become reality. In that scenario, the token could rise to the 0.786 Fibonacci retracement at $213.17.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
