Is Solana price dropping under $90?
Solana (SOL) has been facing tough times lately, with its price dropping below a key support level. For the first time since September 2023, SOL has closed several days below the 200-day Exponential Moving Average (EMA), a trend that many traders watch closely. This could be a sign of further price declines. In this article, well take a closer look at what this means for Solana price prediction and what might happen next.
How has the Solana Price Moved Recently?
Solana is currently priced at $130.57, with a 24-hour trading volume of $8.96 billion, a market cap of $61.15 billion, and a market dominance of 2.94%. Over the past 24 hours, SOL's price has dropped by 1.22%.
Solana hit its all-time high of $259.52 on November 6, 2021, while its all-time low was $0.503701 on May 11, 2020. Since reaching its peak, the lowest price SOL has seen is $8.12, with the highest rebound being $208.75. The current market sentiment for Solana is bearish, and the Fear & Greed Index is at 45, indicating "Fear."
Solana's circulating supply is 468.37 million SOL, out of a maximum supply of 533.68 million. The networks annual inflation rate stands at 13.85%, with 56.98 million new SOL tokens minted over the last year.
Why Solana Price is Crashing?
Solana's price crash can be partly attributed to the broader market reaction to macroeconomic factors, especially in light of the upcoming US Federal Reserves Federal Open Market Committee (FOMC) meeting. Investors are anticipating the possibility of a 25 basis point interest rate cut.
While rate cuts are generally seen as a positive signal for risk assets like cryptocurrencies, the uncertainty surrounding economic conditions and the Fed's future monetary policy has caused short-term volatility. In times of economic unpredictability, investors often move away from risky assets like Solana, leading to downward pressure on its price.
Looking ahead, if the Federal Reserve signals more rate cuts or a shift toward looser monetary policy, this could create a more favorable environment for crypto assets, potentially stabilizing or even boosting Solana's price.
However, if inflation concerns persist or the Fed takes a more conservative stance, we could see continued sell-offs in risk markets, pushing Solana and other cryptocurrencies lower in the near term. The outcome of this meeting will be pivotal for Solanas price movement in the weeks to come.
Is Solana price dropping under $90?
Solana's price has shown remarkable growth over the past year, surging by 559% and outperforming 91% of the top 100 crypto assets, including Bitcoin and Ethereum. Its historical performance, positive returns compared to its token sale price, and high liquidity suggest that Solana remains a strong contender in the crypto market.
However, recent market indicators, such as trading below the 200-day simple moving average and experiencing only 12 green days in the past 30 (40%), signal a bearish trend.
While Solana's high yearly inflation rate of 13.85% could increase the circulating supply, putting downward pressure on its price, external factors like macroeconomic uncertainties, including the outcome of the US Federal Reserves FOMC meeting, may also play a significant role.
If market sentiment remains negative due to concerns about interest rate policies or risk asset volatility, Solana could face further declines.
In the short term, there is a possibility that Solana's price could drop below $90, especially if current market trends persist and traders continue to exit risk assets. However, Solanas strong fundamentals, including its outperformance over the past year and high liquidity, may provide some resilience, potentially limiting how far its price could fall. The next few weeks will be critical in determining whether Solana can maintain its position or dip below the $90 mark.
Read more: https://cryptoticker.io/en/solana-price-dropping-under-90
Text source: CryptoTicker
