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Solana (SOL) has weakened more than 20% since June 05, 2024, falling from $175.62 to a low of $122.18. The current price of SOL stands at $140 and the risk of further decline is still not over.

A general market decline has impacted Solana’s price but it is also important to mention that Solana has witnessed a decline in large transaction volume in the last several weeks.

A decline in large transaction volume for an asset can be attributed to several factors, with the most significant being a shift in market sentiment from positive to negative. On the other side, positive information is that crypto analysts expect that crypto-friendly Donald Trump will win the U.S. presidency in November and the process of approving Solana ETF could be quicker in that case.

But where is the price of Solana (SOL) going next, and what can we expect from July 2024?

Today, Crypto Lists will discuss SOL price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

One of the most high-performing blockchains in the world

Solana is one the most performant blockchains in the world that is designed to keep fees low for applications with billions of users. The usual cost for each transaction hovers around $0.00025 and according to its official website, Solana boasts the ability to execute 50,000 transactions per second. Solana employs a distinctive consensus mechanism known as “Proof of History” (PoH), enabling it to effectively manage growing transaction volumes without compromising on performance.

Like Ethereum, Solana supports smart contracts, empowering developers to construct decentralized applications (DApps) and implement tailored programmable logic on the blockchain. Various applications within the Solana ecosystem have experienced expansion, encompassing decentralized exchanges, stablecoins, NFT (non-fungible token) platforms, and more.

SOL serves as the utility token within the Solana network, and it is used for staking, covering transaction fees, engaging in governance decisions, and providing incentives to validators to ensure network maintenance. SOL has been enjoying a bull run that more than doubled the price of this crypto from lows of around $78 in January 2024 to a high of $209 that was reached on March 07.

However, investor sentiment in the cryptocurrency market has worsened after Bitcoin (BTC) fell below the $65,000 level, causing assets across the crypto space to lose their footing and according to crypto analysts, this can be attributed to macroeconomic factors.

VanEck filed for the first Solana exchange-traded fund (ETF)

Solana has outperformed its peers this past week, rising 9% over the past seven days, while Bitcoin and Ethereum have declined by over 4% and 2%, respectively, during the same period. Coinbase analysts David Duong and David Han said:

“This performance has been buoyed by a number of endogenous catalysts specific to the Solana ecosystem including major technological releases and VanEck’s filing of the first spot Solana ETF in the U.S. The fact that VanEck filed for the first Solana exchange-traded fund (ETF) is promising regardless of its outcome.”

The positive news is that crypto analysts anticipate a victory for crypto-friendly Donald Trump in the U.S. presidential election in November, which could expedite the approval process for a Solana ETF. All of this contributed to the fact that Solana again became a cryptocurrency in focus and data from the on-chain analytics firm Santiment shows that SOL’s social volume has surged significantly following the recent cryptocurrency recovery.

Tracking the volume

The “Social Volume” here refers to an indicator that keeps track of the degree of discussion that any given asset receives on the major social media platforms. This metric calculates its measurement by tallying the unique number of posts or messages that mention the cryptocurrency at least once. It is also important to say that this indicator doesn’t merely count the mentions themselves because a few posts can contain numerous mentions, while the overall discussion on social media might be minimal.

High mention counts might imply extensive discussion, but in reality, the conversation could be limited to niche circles. By measuring the number of posts, the Social Volume provides insight into broader trends across social media.

Technical analysis for Solana (SOL)

Solana (SOL) has weakened from $175.62 to $122.18 since June 05, 2024, and the current price stands at $140. A decline in the price can be attributed to several factors, with the most significant being a shift in market sentiment from positive to negative. As long the price of SOL is below the resistance which I marked on the chart below, the risk of further decline still persists.

Important support & resistance levels for Solana (SOL)

Important support & resistance levels for Solana (SOL)

On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. SOL has weakened from its recent highs, but if the price advances above $160, the next target could be an important resistance level at $180. The strong support level is $120, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $100. If the price drops below $100, which also represents an important support level, the next target could be located around $80.

What speaks for the rise in the Solana (SOL) price

General market sentiment is an important factor that influences SOL’s price but positive news, partnerships, and developments related to Solana can attract investors and traders, pushing the price up.

There is a possibility that a Solana ETF could be introduced in the near future, and because of this many crypto analysts say that more investors could purchase SOL in the months ahead, which could lead to further growth. In light of this, SOL could easily advance above the current price levels, especially if Bitcoin and other major cryptocurrencies show positive developments.

What indicates the downfall of Solana (SOL)

Solana (SOL) is unpredictable and a risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. At the same time, the macroeconomic landscape remains uncertain; major central banks continue to keep interest rates at high levels, and risk-on assets such as cryptocurrencies could suffer again in such conditions.

The important support level for Solana (SOL) stands at $120, and if the price falls below this level, the next target could be the strong support that stands at $100.

What do analysts and experts say?

Solana has outperformed its peers past week, rising 9% over the past seven days, while Bitcoin and Ethereum have declined by over 4% and 2%, and this is connected with some positive news around Solana. VanEck filed for the first Solana exchange-traded fund (ETF) which is certainly positive news regardless of its outcome. Crypto analysts expect that crypto-friendly Donald Trump will win the U.S. presidency in November and the process of approving Solana ETF could be quicker in that case.

At the same time, the on-chain analytics firm Santiment reported that SOL’s “Social Volume Indicator” has surged significantly in the last several days. The “Social Volume Indicator” keeps track of the degree of discussion that any given asset receives on the major social media platforms. This metric calculates its measurement by tallying the unique number of posts or messages that mention the cryptocurrency.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.

by Our Certified Author
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