Solana, the sixth biggest cryptocurrency in the market, has been continuously disappointing its holders with its price dips. Despite its potential to create ATHs like $294.33, the token trades at $130.70 amid crypto market downturns. Although there’s the possibility of trend reversal, there are significant risks, as SOL price’s recovery to $140 would wipe out $69.62M. Why? Let’s discuss this.
Why Did Solana’s Price Drop 5% Today?
Solana price has been facing continuous resistance rejections to surge to the $150 mark. Its price surged to nearly $147 a few hours ago but dropped soon. In the last 24 hours alone, the token’s worth had dropped 5%, and it currently trades at $130.70 with a market capitalization of $67.15B.
Although this drop is part of the global crypto market downtrend, investors lost confidence in this altcoin, which cannot be ignored. In 2024, it gained significant traction and rallied due to the popularity of Solana meme coins, but that has faded as the demand for these cryptos decreased.
The drop in the onchain activity and trading volume clearly explains this investors’ diverted attention. Earlier reports revealed that the 7-day dApp revenue declined nearly 50% within two weeks. At the same time, the fees declined. Critics showed concern that the rising competition amid the introduction of better blockchain networks may impact Solana’s performance significantly.
Solana Price Prediction: $140 Rebound to Wipe Out $69.62M
Along with many altcoins, Solana is also battling a bearish trend. However, that may not persist as the experts believe it is in a consolidation phase and running within a parallel channel pattern. Analyzing the SOL USDT price chart and analysts’ predictions reveals that it is at a crucial juncture where it can result in an uptrend or a downtrend.
Interestingly, a massive liquidation will occur with the SOL price rebounding to $140, wiping out $69.62M in shorts. Crypto analyst Ali Martinez X’s post further confirms this prediction, as he claims a surge to $140 would result in millions of liquidation. This is because the exchange closes the positions of the traders who bet on declines.
An upswing to $140 for Solana SOL would liquidate $69 million in short positions!
This would result in an SOL price downturn only in the short term, as the liquidation will force buyers to buy back tokens, resulting in a price surge.
What’s Next For Solana
Although the $140 mark is the crucial liquidation point, this could influence the price. Experts’ Solana price predictions claim that a surge past this could result in the much-anticipated rally to $240 and higher, but the failure to surge to that will result in a prolonged downturn.
Investors must continue to monitor SOL’s next price moves, mainly as SOL ETF approval is being discussed.
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