Many people look at the current crypto market prices with burning eyes. These prices are absolute bargains, even if no market reversal exists. It is tough to make an accurate Solana price prediction right now, but the network seems the run out of overall momentum in recent weeks.
Solana Price Prediction Looks Bleak
Before making financial commitments, analyzing markets with technical analysis and indicators is always advised. Unfortunately, the charts only tell so much of the bigger story. On paper, Solana (SOL) looks like an obvious buy. It has soared in value recently and is at a bargain value today. Many traders chomp at the bit to scoop up SOL below $28, expecting to see it 10x in the coming months.
However, one should always consider if such a bold Solana price prediction holds up. Is there enough reason for SOL to rise to that high value again? It is 89.4% removed from the all-time high at the time of writing. There is no immediate reason for this altcoin to explode in value again. Especially if its network continues to run into stop-and-go issues. Those events highlight Solana’s instability.
Other factors are at play too. All crypto assets are in a bear market, and breaking away from the pack is tricky. Those who favor a bullish Solana price prediction may see things differently. SOL has broken out regardless of overarching conditions before. However, it also retraces pretty quickly and violently afterward. Timing trades is essential, but that is easier said than done.
This week, SOL dropped by nearly 10%. That is not just due to bearish crypto industry conditions, as BTC and ETH lost less value. There is growing dismay regarding Solana, and bagholders have started taking notice. That doesn’t mean SOL cannot rebound, but it will not necessarily jump to over $200. If anything, a dip below $25 seems more plausible.
Solana DeFi Dries Up
There was a time when Solana could rival the more prominent blockchains in decentralized finance. Its DeFi TVL peaked well above $10 billion a year ago. Today, it is barely above $860 million and at risk of dropping much lower. It is uncanny how quickly things can change, but the DeFi industry has lost tremendous momentum. It appears few people are willing to take risks under these market conditions.
Unfortunately, it doesn’t appear as if Solana DeFi will improve. That must be taken into account when creating a Solana price prediction too. Several protocols lost over 15% of their TVL this month. That list includes Marinade, Raydium, Lido, Tulip Protocol, Quarry, Saber, etc. The hit to liquid staking is rather surprising, although it signifies the overall sentiment regarding SOL.
Social Sentiment Creates Rough Solana Price Prediction Basis
Any financial instrument can only go up in value once demand outpaces supply. To spark demand, there must be market excitement. Unfortunately for SOL holders, that excitement doesn’t exist today. If anything, the bulls temper expectations – bullish sentiment -20.1% – and the social mentions are down by 17.1%. That also yields a 9.6% decline in spam volume, but that is as far as the positives go.
Solana also struggles with social media activity. No one can offer a bullish Solana price prediction if fewer people talk about the coin. Twitter volume decreased by over 17%, and Medium volume retraced by nearly 24%. Even Reddit sees 7.5% fewer conversations regarding Solana and SOL. The hefty increase in YouTube volume is exciting but offers no positive SOL price outlook for now.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.