SOL has fallen by 5% in the past 24 hours, with the Solana price dropping to $103 amid a market-wide correction.
Today’s drop extends a largely unimpressive week for the alt, which has declined by 11% in the last seven days, with traders seemingly taking profits after a largely positive phase.
Indeed, SOL remains up by 18% in a month and by 300% in the last 12 months, making the altcoin one of the best-performing top-50 alts across these periods.
And with the market still likely to become more bullish as it approaches April’s Bitcoin halving, SOL looks on course to enjoy further gains in the not-too distant future.
Solana Price Drops 5%: Can SOL Fall Down to $20 Again?
SOL’s chart suggests that the coin may have to weather a short-term correction before it can properly pick up again.
Its indicators are taking a dive today, with its relative strength index (purple) – which is a measure of momentum – dropping below 50 a few hours ago.
This is a sign of growing selling pressure, with SOL’s 30-day average (yellow) also telling a similar story.
Source: TradingView
The latter has flatlined and begun dipping in the past couple of days, and given that it had been well above the 200-day average (blue) for several months, it is due a sustained fall.
What’s concerning for the SOL holder is that the coin’s current price is falling quickly towards its support level, in green on the chart above.
It will therefore be very instructive to see whether the Solana price can resist a fall below $100, which is key psychological support.
If it drops decisively below this level, it could spook more holders into taking profits (or cutting losses) and selling their coins.
In other words, SOL will have to endure more losses, even if it’s unlikely that it would fall all the way down to $20.
In the longer term, SOL’s overall prognosis continues to look good.
Aside from wider market bullishness (which follows from rising Bitcoin ETF volumes), its recent progress stems from Solana’s growth as a platform.
Change happens fast. Solana now rivals or surpasses Ethereum across:
– DEX Volumes
– NFT Volumes
– Active Addresses
– Transaction Count
– Stablecoin Transfers
“But Solana isn’t decentralized ”
Reality: Solana has ~40% the amount of nodes as Ethereum, they’re only ~5x more… pic.twitter.com/ZBuLiTcXmf
— Ryan Watkins (@RyanWatkins_) December 19, 2023
For instance, Solana has become arguably the biggest layer-one network for NFTs and meme coins in recent months, with its volumes often surpassing those for Ethereum.
Notwithstanding a recent outage, such growth is likely to continue, meaning that the Solana price will rise in parallel.
After its current correction it could reached $150, possibly by the end of spring.
Other High-Potential Altcoins
While SOL gets its correction out of the way, many traders may choose to turn alternative tokens, particularly newer coins in line to list on new exchanges and rally.
There are a variety of new tokens ready to do this, with of the most promising being Smog (SMOG).
SMOG is a Solana- and Ethereum-based meme token that recently listed on DEX aggregators such as Jupiter and Birdeye, where it has rallied by over 3,500% since going live.
Source: Birdeye/TradingView
What’s interesting about SMOG is that, in contrast to 95% of other Solana-based meme coins, it has been able to consolidate its early price gains.
There’s a reason for this: the meme coin features a very bullish airdrop system, which will regularly reward participants based on how many SMOG tokens they hold and for how long.
This system has already begun incentivizing long-term holding, which accounts for why SMOG’s price has stabilized.
$SMOG One #Memecoin To Rule Them All
Buy or stake ERC-20 $SMOG tokens through our website for 42.0% APY.
Tokens staked are locked for 90 days, with rewards withdrawable throughout.
All tokens purchased through the site will be automatically staked.
Link in bio! pic.twitter.com/Y98lZcjuk6
— SMOG (@SMOGToken) February 10, 2024
SMOG has also been successful in growing its online following, with its X account now counting more than 25,000 followers.
Aside from its playful use of memes, it has been able to do this partly because it is also running a number of quests for followers to complete.
These involve the completion of tasks, such as joining the Smog Telegram and following the coin on X, and they reward participants in SMOG.
Such tasks usually revolve around spreading word of the coin, which is again why it has been able to grow quickly.
And once it lists on additional trading platforms, it’s likely to accelerate such growth.
Investors can buy the token now by going to the official Smog website, while it’s also tradeable via Jupiter.
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