Solana (SOL) is experiencing a notable decline as the price rally starts to weaken, particularly highlighted by a significant 25% drop in the SOL/ETH trading pair over the past three weeks. This downturn has put Solana at a disadvantage compared to Ethereum (ETH), which has benefitted from increased institutional interest marked by substantial inflows into Ethereum-based ETFs. As a result, while Ethereum only dipped by 1.3% over the last week, Solana's value fell by 11%, which reflects a worsening situation for SOL.
As of now, the SOL/ETH ratio sits at 0.0613, marking it at a crucial multi-month support level. This level has historically determined whether the price has continued to climb or faced further declines. Currently, bearish pressures in the market threaten this support, as past performance shows that breaching this level could lead SOL/ETH down to a low point of $0.000055 formed in late 2024.
Recent trends suggest that Solana may face more challenges as Ethereum continues to attract investor interest. With this shift in focus towards Ethereum, Solana's upside seems limited, and technical indicators reveal that bullish control over SOL is diminishing. Instances of this bearish trend are further evidenced by the Relative Strength Index (RSI) hitting its lowest point since early April, showcasing a growing bearish sentiment.
Price forecasts indicate that if the downward momentum persists, Solana might drop to a support zone at the 50% Fibonacci level around $141, potentially leading to a further decline down to a target of $130, marking a significant 16% decrease from its current trading value of $154.
Analysts highlight that breaking through the resistance at the $165 mark could offer a potential rebound for SOL, allowing the price to reach levels closer to $187. As of now, market sentiment remains predominantly bearish for Solana, suggesting patience may be needed for prospective investors.
As of now, the SOL/ETH ratio sits at 0.0613, marking it at a crucial multi-month support level. This level has historically determined whether the price has continued to climb or faced further declines. Currently, bearish pressures in the market threaten this support, as past performance shows that breaching this level could lead SOL/ETH down to a low point of $0.000055 formed in late 2024.
Recent trends suggest that Solana may face more challenges as Ethereum continues to attract investor interest. With this shift in focus towards Ethereum, Solana's upside seems limited, and technical indicators reveal that bullish control over SOL is diminishing. Instances of this bearish trend are further evidenced by the Relative Strength Index (RSI) hitting its lowest point since early April, showcasing a growing bearish sentiment.
Price forecasts indicate that if the downward momentum persists, Solana might drop to a support zone at the 50% Fibonacci level around $141, potentially leading to a further decline down to a target of $130, marking a significant 16% decrease from its current trading value of $154.
Analysts highlight that breaking through the resistance at the $165 mark could offer a potential rebound for SOL, allowing the price to reach levels closer to $187. As of now, market sentiment remains predominantly bearish for Solana, suggesting patience may be needed for prospective investors.
