Solana Price Struggles Below $100, Hits 2024 Lows: Is SOL Poised for a Reversal?

Key Insights:

• The Solana (SOL) price plummets to less than $97 and records the highest network transactions of 148 million per day.
• The number of institutional adoptions increases when tokenized stocks on Solana have a market cap of over $230 million.
• Solana price prediction indicates that Solana will continue having downside risks, but long-term expansion is backed by the on-chain fundamentals.

Solana (SOL) price is under massive pressure and is trading below one hundred dollars as part of a wider cryptocurrency market downturn. This new low is the lowest in seven years, an additional step down of SOL, decreasing more than 16% in only one week.

Even after the price battles, On-chain fundamentals are promising to grow positively, as a result of record-high transactions orchestrated daily at Solana.

What should SOL price do to get back on its feet in this pessimistic market?

Solana Price Struggles Amid Market Correction

Solana (SOL) price has been under severe pressure as it has fallen below $100 in an extended crypto market downturn. SOL price has fallen by over 16% in the past week alone, hitting its lowest point since 2024.

This was during a time when Bitcoin (BTC) and Ethereum (ETH) were in decline, with both assets seeing significant drops. Bitcoin dropped to less than $73,000, and Ethereum dropped to less than $2,100, pulling Solana with them.

This Solana price drop notwithstanding, the number of on-chain activities has soared on the SOL network. The blockchain registered nearly 150 million transaction activities on Jan.30, omitting governance votes.

Solana Transaction Activity | Source: X

Despite the poor performance of Solana price, the presence of institutional interest is still evident. The market cap of tokenized stocks on the Solana blockchain was up to $230 million, which indicates the persistence of bigger institutional investors.

The recent actions of the large asset management companies, such as WisdomTree, which have extended their tokenized investment lines to the Solana network, represent an institutional belief in the potential success of Solana in the long-term.

Moreover, GustoHQ, a payroll platform, can use USDC on Solana so that foreign funds can be transferred in real-time settlement with stablecoins.

Solana (SOL) Price Outlook Amid Weak Institutional Inflows

In the recent past, institutional investors have been cautious even though Solana is still attractive to them.

The total inflows into Solana-oriented products have been comparatively low during the last three weeks, maintaining under $9 million a day, having had outflows on some days.

On 2nd February, the US Solana ETF registered a small inflow amounting to $1.24%, after registering an inflow of $5.58 on the previous day.

The derivatives market also indicates the present struggles of the Solana (SOL) price. The Open Interest (OI) of Solana decreased by 1.24 in 24 hours, reaching $6.37 billion, which is an indication of depleting capital in the market.

Solana Open Interest (OI) | Source: CoinGlass

Besides, short liquidations have been overtaken by long liquidations at a rate of more than five times, which means that the market is bearish.

OI-weighted funding rate of Solana is negative ( -0.0238), which supports negative expectations of traders.

Such indicators of declining demand, as well as the pessimistic mood in the overall market, are consistent with the recent sell-offs. Liquidations in the market totalled to $735 million, of which long liquidations amounted to $529 million.

SOL Price Prediction: Bearish in the Short-Term?

The technical picture of Solana price is weak, and price action is struggling. In case the bearish trend remains, analysts are targeting the potential of dropping to as low as $85.

SOL price is currently below the 50-day, 100-day, and 200-day EMAs, indicating that the price is yet to be compelled downwards.

The Relative Strength Index (RSI) is within the oversold range (28), indicating Solana price may face additional selling pressure. In case of a lower price than $95, the second line of defense would be $85, which may initiate further losses.

Also, the Moving Average Convergence Divergence (MACD) has negative momentum, indicating more chances of further decline.

Solana Price Analysis | Source: TradingView

Despite the short-term challenges, analysts see a potential rally if SOL price can reclaim the $100 support level. A successful breakout above the $119 resistance could lead to a price target of $150 in the medium term.

Although Solana price faces short-term headwinds, its future is bright. Standard Chartered has reduced its short-term price forecast of SOL price, but forecasts that in 2030, Solana may reach a price of $2,000.

Analysts at the bank think that Solana is becoming a less speculative asset and a platform that can handle microtransactions and AI-friendly apps, which will see it grow steadily over the next few years.

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