Solana Under Pressure! Will SOL Price Drop Further or Recover?

• While the correction has led to Solana (SOL) falling below its 10-day EMA, it remains above its 50-day and 200-day EMAs.
• SOL whale activity shoots while Solana’s active addresses have surged to a six-month high of 444.48k, indicating growing interest and sustained demand for SOL tokens.

Solana, seen as a competitor to Ethereum Layer-1, has experienced a decline since reaching its peak of $68.21 in November. Over the last 24 hours, the Solana price has slipped below $55 amidst a broader market sell-off involving Bitcoin and other altcoins.

The current correction has led SOL to fall below its 10-day exponential moving average (EMA) at $56.53, indicating a shift in favor of bears over bulls. However, SOL remains above its 50-day and 200-day EMAs at $43.25 and $29.51, respectively.

Despite ongoing pullbacks, SOL has displayed resilience, often retracing to the 38.2 percent or 50 percent Fibonacci levels during its upward trends. At present, Solana’s coin is valued at approximately $55.61. A potential bullish resurgence is feasible as long as it maintains levels above the 50 percent Fibonacci level, around $42. If the bullish trend resumes, potential price targets include $78.2, $100, and $121.75.

Crypto analyst @AltcoinSherpa, expressing optimism for SOL, anticipates a correction and suggests an entry point below $50. The analyst predicts a SOL price reaching triple digits in 2024 based on their analysis of the trend.

$SOL: I’m honestly unsure if I’ll get sub $50 like I want. I already have a longterm bag of this that I just hold so I’m still exposed…but I want to add to my position. Entering now and having some orders sub $50 is probably a decent idea. #Solana pic.twitter.com/G2eFE05rmA

— Altcoin Sherpa (@AltcoinSherpa) November 25, 2023

On the other hand, Solana-based DeFi projects have also gained good traction. Jito, a Solana-based protocol and the second-largest in the Solana ecosystem by total value locked (TVL) is gearing up for the launch of its new governance token, JTO. This strategic initiative marks a crucial milestone in Jito’s evolution, aiming to decentralize decision-making processes and enhance community engagement in shaping the protocol’s future.

The upcoming introduction of the JTO token, featuring a total supply of 1 billion, signifies a significant development for Jito, underlining its commitment to fostering decentralization and community participation.

On-chain Metrics for Solana

Marouane Garcon, a co-founder of The Real-World Asset Exchange, a perpetual futures exchange, took a unique analytical approach by focusing on the impact of major traders. Referring to information from Whale Alerts, Garcon elaborated:

Solana’s price drop can be attributed largely to whale movements. Over 2.1 million SOL was transferred in just three transactions, signaling major selling ahead. This spooked retail investors into selling out of fear.

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