Solana Price Prediction: SOL Continues To Drop, Could Slip Below $110

Daily Solana SOL Technical Analysis

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Last Updated February 11th 2022
4 Min Read
  • The Solana price dropped to $112 during the ongoing session as sellers forced the price down. 
  • SOL has dropped off over the past few sessions and was only able to register a marginal increase on Wednesday. 

The Solana price fell back in the red during the current session after Wednesday’s marginal recovery, as sellers pushed the price back down. SOL had started the week on a fairly positive note, rising by almost 2% and moving to $117.62. The price fell back on Tuesday, falling by 3.45% and dropping to $113.56, before recovering on Wednesday, registering a marginal increase. The current session sees SOL at $112, with sellers in control of the market. 

Solana Price Chart Indicates Buyers And Sellers Struggling To Establish Control  

The Solana price started the previous week on a bullish note, rising by nearly 7% on Monday and then surging by over 10% on Tuesday, moving to $110.08. At this level, the 20-day SMA was acting as resistance, and SOL fell back, dropping by over 7% on Wednesday and falling to $101.86. SOL registered a marginal drop on Thursday before registering a strong recovery on Friday, rising by nearly 11%, pushing past the 20-day SMA, and rising to $112.65.

Image: SOL/USD daily

Image: SOL/USD daily chart 021122

The Solana price remained bullish over the weekend, rising by 1.05% on Saturday and then rising by 1.35% on Sunday to end the weekend at $115.37. Monday saw SOL remain bullish, as the price rose by1.95%, before dropping back on Tuesday, falling by over 3% and dropping to $113.56. SOL registered a marginal increase on Wednesday before dropping back during the ongoing session.

We can see that the MACD is currently bullish, indicating that we could see the price recover from this level.

Image: SOL/USD 4-hour

Image: SOL/USD 4-hour chart 021122

The 4-hour Solana price chart shows us that SOL had dropped to $96.90 on the 3rd. At this level, the 50-bar SMA was acting as support, and SOL was able to make a strong recovery, pushing above the 20-bar SMA and $107.23. SOL continued to push higher from this level, surging to $116.20 on the 5th. SOL fell back from this level, dropping to $112.97, before making a strong recovery and pushing up to $121.44, where the 200-bar SMA was acting as resistance. As a result, the price fell back, slipping below the 20-bar SMA and falling to $110.93. The price recovered from this level, rising to $115.12, before dropping back to its current level of $112.

We can see that the MACD is bearish, indicating that we could see the price drop further. However, if the price recovers, we could see it flip to bullish.

Solana Proves Formidable With Rapid Growth In Daily Active Addresses, Neck and Neck With Polygon And Ether

The number of daily active users on Ethereum, Polygon, and Solana are becoming almost identical. The numbers are converging at the level of approximately 300,000 daily users as measured by the number of active addresses.SOL daily active addresses

Source: ChainCrunch 

Such convergence has become possible due to different tendencies observed in regards to all major altcoins that offer solutions for smart contracts. In particular, Ethereum demonstrates a slightly negative dynamics as its peak number of daily active addresses exceeded 600,000.

The probable cause of the declining market for ETH is the insufficient scalability of Ethereum’s execution layer and high gas fees. Thus, many users consider alternative crypto solutions that allow economizing funds and time associated with their transactions. The number of Polygon users remain comparatively stable within the past few days. This indicates that the blockchain has effectively maintained the loyalty of its regular users by offering an appropriate combination of service quality and low fees.

At the same time, Solana demonstrates the most rapid growth within the past few days, closing the gap between its number of daily active addresses and those of leading platforms. Solana’s innovations and ability to process a tremendous number of transactions per second may be the main determinants of such users’ reactions.

From the perspective of the entire crypto industry, the current situation is mostly beneficial. The reason is that the demand is more uniformly distributed among the main platforms, thus avoiding earlier misbalances, and Ethereum’s network congestion caused the uncontrolled increase in gas fees and lower access to its services for some clients.

Solana Price Is Expected To Reach These Levels 

The Solana price chart shows that SOL has been quite bearish over the past few sessions and is down by almost 1% during the ongoing session. If sellers manage to retain control of the session, we could see SOL drop to $110 or below.