- Solana (SOL) dropped 4% in the past 24 hours and 11% over the past week amid a wider market downturn.
- The cryptocurrency faces the risk of falling below the $200 mark, which would erase recent monthly gains.
- SOL found some support at the $210 price level, but ongoing market volatility could put this support at risk.
- Price predictions from CoinCodex suggest SOL will remain above $200, with a potential recovery to around $235.77 in the coming months.
- A possible interest rate cut by the U.S. Federal Reserve in October could increase demand for riskier assets like Solana.
Over the last several days, Solana (SOL) experienced a significant price decline. According to CoinGecko, the token’s value dropped by 4% in the past 24 hours and 11% within a week, corresponding with a broader market decrease. Solana has managed to hold onto a 3.9% gain over the last month and a larger 43.8% increase compared to the previous year.
“Solana (SOL) last traded below the $200 mark in early September,” the report noted. If prices fall below this point, any gains made throughout the month will be eliminated. The asset rose to a high of $251 on September 18 but has been slowly declining since.
At present, Solana has technical support at the $210 price level. If liquidations—where positions are forcibly closed—slow down, the price may stabilize near this figure. However, further price swings could threaten this support, making the cryptocurrency vulnerable to dipping further.
Market watchers say Bitcoin (BTC), which currently holds steady at around $112,000, remains the sector leader. Solana’s movement continues to be linked to Bitcoin’s price direction, so BTC stabilizing may result in SOL stabilizing as well.
Price predictions by CoinCodex indicate that Solana (SOL) is unlikely to fall below $200 in the short term. Instead, the platform projects that SOL could dip to around $208 before attempting to recover, targeting a price near $235.77 by December 3.
There is a possibility that Solana could see further gains if the U.S. Federal Reserve reduces interest rates, as this action might attract more investors to riskier assets. According to analysts, an interest rate cut could lead to increased inflows into assets like SOL, potentially driving a price rally.
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