Is the Solana (SOL) Price About to Crash to $70? Analyst Explains

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TL;DR

X user Bluntz predicts further decline in Solana’s price, viewing it as a buying opportunity.
Solana’s on-chain trading volume decreases, but NFT sales volume increases.

Is SOL Headed for a Further Decline?

According to the popular trader using the X (Twitter) handle Bluntz, Solana’s price might be poised for an additional plunge in the following weeks. The analyst also believes that SOL has recently charted a specific trajectory called the “B wave triangle.” 

The pattern is one of the stages in the Elliott Wave Theory and occurs during the correction phase. In the “B wave triangle,” the value of a certain cryptocurrency creates a series of lower highs and higher lows and suggests a period of consolidation before making a significant move in any direction. 

Bluntz sees the potential SOL decrease as a buy-the-dip opportunity, saying “max bidding” will begin if the price retraces to “low 70s.” 

Shortly after, the trader noted Solana’s drop below the previously depicted resistance level of $87, asking if bulls had already started buying.

The X users Ali and JAKE also laid out SOL predictions as of late. The former envisioned a rally toward $163 should the asset surpass the resistance mark of $110. JAKE was even more bullish, praising Solana’s “robust” ecosystem and setting a staggering tag of $750 per coin. Those willing to explore additional forecasts can take a look at our latest video below:

Taking a Closer Look at Some On-Chain Metrics

Solana’s recent price correction coincides with a decline in its on-chain trading volume. According to DefiLlama, the figure has slipped below $700 million in the past three days, far from the peak of over $2.6 billion at the end of December when SOL exceeded the $120 mark.

Solana Trading Volume, Source: CoinGecko

The total volume locked (TVL) on Solana has also decreased since the beginning of 2024. The metric refers to the overall value of digital assets locked or staked in a certain platform. As such, the decrease in SOL’s price leads to a reduction in the TVL. It’s also possible that assets were flowing out of the network as users unlock to de-risk.

However, it’s not all bad news, with Solana marking some progress on the non-fungible token field. NFT sales volume for the past week has jumped to almost $70 million (a 55% increase compared to the prior week) and $10 million on a 24-hour scale (9% rise).

Ethereum continues to be a leader, with $110 million generated in the last seven days. Nonetheless, its increase is around 20%, thus trailing behind Solana. 

The post Is the Solana (SOL) Price About to Crash to $70? Analyst Explains appeared first on CryptoPotato.

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