Solana (SOL) has faced significant price declines recently, falling below the $100 mark and reaching a 14-month low.
This drop is attributed to broader market bearishness, largely driven by ongoing trade tensions and fears of a financial crisis, often likened to the 1987 “Black Monday.” Despite these challenges, there is potential for SOL to stabilize and recover in the near future.
Solana Investors Stand Strong
The number of active addresses on the Solana network has recently hit a 6-month low, with around 4.44 million addresses engaging on the platform. While the decline from January’s peak of 9 million addresses might seem concerning, it also indicates that investors are likely waiting for a strong recovery before being more active on the network.
Despite the price downturn, Solana’s loyal investor base continues to hold their positions, signaling potential support that could prevent further price declines. Solana’s investors remain hopeful for a rebound, particularly given the network’s history of bouncing back after downturns.
Looking at technical indicators, the Relative Strength Index (RSI) for Solana is currently sitting in the oversold zone, below the critical 30.0 mark. This suggests that the bearish momentum may be nearing its saturation point, with the potential for a reversal in the near future. Historically, when SOL has dipped into the oversold region, the price has rebounded.
The RSI reading suggests that the market may be poised for a short-term recovery if the broader market conditions stabilize. While the global financial climate remains uncertain, the RSI signals that Solana could be on the brink of a price rebound, provided the bearish forces start to subside.
SOL Price May Recover Soon
Solana’s price has dropped 20.8% during the intra-day trading session, reaching $97. The price fall below $100 marks a new low for the asset, driven by a surge in bearish sentiment across the market. As a result, many investors are watching closely to see if Solana can reclaim its previous support levels.
Despite the recent declines, Solana’s recovery potential remains strong. If the price manages to break above the $100 mark and hold it as support, the positive momentum could return. Investors are likely to capitalize on the current 14-month low, injecting new capital into the network and helping to stabilize the price.
However, if the broader market conditions fail to improve, Solana’s price may continue to struggle. A drop below the $90 support level would invalidate the bullish outlook and extend losses. As a result, SOL may face further downward pressure, especially if negative market trends persist.
Disclaimer
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