by Gideon Geoffrey 
At the time of writing, Solana is trading at $169. Following three days of slight price declines, the coin may be heading for its first green.
The chart shows a lot of uncertainty. It appears the bulls are trying to consolidate their gain but are doing a poor job at it. This comes after a massive 10% dip between May 21 and May 24.
The coin had several dojis following the drop in the last three days, signaling no significant price improvement. Despite the overall bearish trend in the cryptocurrency market, the altcoin seems relatively unaffected.
However, the previous drop 10% decline is in response to fundamentals
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FTX Bailout Threatens Price
FTX has recently announced that it has sufficient funds to pay off all its creditors and customers, with over 18% of the total funds remaining after the payout. The firm anticipates having $16.3 billion after selling off its assets to settle its $11 billion debt.
Following this announcement on May 7, SOL experienced a more than 3% price decline due to the company’s plans to sell off its holdings to pay its debts. It’s worth noting that over 34% of the American cryptocurrency exchange’s total reserve comprises Solana.
In April, FTX sold two-thirds of its holdings at a 63% discount to Galaxy Trading, Pantera Capital, and Neptune Digital Assets. This sale resulted in the cryptocurrency closing the month with losses exceeding 37%.
The recent announcement has raised concerns among traders, with many anticipating another decline when FTX decides to sell its remaining holdings, although no specific timeline has been provided for this.
Following its announcement of paying off creditors, the firm recently sold 784,000 SOL. The buyer was Figure Market, which announced that it bought the coin for a discounted price of $102 per unit. This meant it spent $80 million on the purchase.
The auction, which took place on May 22, had other audiences as the firm called on other stakeholders to join. The total amount of Solana FTX sold might be higher. Additionally, the new buyer failed to disclose what they intend to do with the asset.
In addition to FTX’s challenges, Michael Saylor has announced that the SEC will target several coins and tokens, identifying Solana as one such asset.
Following Saylor’s comments, Gary Gensler, the SEC chairman, announced on CNBC that regulators would be targeting specific cryptocurrencies.
Given the potential for further regulatory challenges, the cryptocurrency market is expected to experience significant declines and increased volatility.
Solana’s Current Price Trend
Solana is seeing small increases as the bulls attempt recovery. However, the price change is not significant, and it is printing a doji. Nonetheless, this is a green doji, which indicates small bullish actions. The small hike comes amidst a 6% drop in trading volume.
Looking at the broader picture, the asset is trading above the 100-day EMA, signaling a bullish trend, and above the 200-day EMA. Additionally, it is trading above the 50-day EMA, indicating that the asset is maintaining its bullish posture.
In response to April’s decline, the moving averages show mixed signals. For instance, the 50-day MA is declining, but the altcoin is trading below it.
Despite the downtrend, SOL continues to trade above the 200-day MA. If the 50-day MA continues its decline, the asset may experience a death cross.
Solana Price Prediction 2024
The future for SOL looks uncertain as further price declines are expected, with bulls trying to prevent a downtrend at various critical levels. Following its recent downtrend, the altcoin aims to keep prices above the pivot point at $150. The relative strength index is trending almost parallel, indicating no large pressure from the bulls or bears.
Price have remained stable above $166 with small declines. Price movement suggests significant demand concentration at the mark. Adding to the strength of the level is the Fibonacci retracement level. It is currently holding on to the 23% Fib level.
Traders may gear up and prepare for a potential drop to $160. Breaking the 23% Fibonacci level could cause the altcoin to retest May’s at $140.
On the other hand, the cryptocurrency will attempt to regain lost levels and target the first pivot resistance at $180. Historical price movements suggest that the coin may stabilize around this level for an extended period before making further attempts. Once stability is achieved above this mark, the coin will aim to surge to as high as $200.
As the overall crypto market gains momentum, Solana will attain a new all-time high (ATH) before the year ends, with a potential test of $300 for the first time.
Price Prediction 2025
Many are expecting a continuation of the bullish trend that closed out 2024 in the upcoming year. According to an analyst’s previous prediction, several assets, including SOL in the crypto market, are projected to experience a significant increase in value in 2025.
On the weekly chart, SOL is recovering from a bearish divergence, with the MACD showing a downtrend. However, it’s anticipated that this will change once the bull run begins, resulting in a bullish divergence.
Historically, when SOL experienced a similar interception in the 1-week timeframe, it saw a gain of over 1000%. While such a substantial increase may be unlikely in 2025, the asset is anticipated to see surges ranging from 200% to 500%. Similar patterns support this trend played out in 2021.
Drawing a parallel to Bitcoin’s historical performance, following its previous halving, the asset surged by over 500% before undergoing a correction. With a projected 200% increase in 2025, SOL could reach as high as $800 from its 2024 closing price of around $300.
The pivot point standard also suggests a potential support level of $264, which could serve as a launchpad for SOL’s performance in 2025.
Price Prediction 2026
It’s anticipated that the period approaching 2025 will likely experience a bearish trend.
Additionally, the outlook for 2026 suggests a bearish market for SOL. Historical data indicates that the second year following a halving tends to be the most negative.
This trend is evident in Ethereum’s performance during similar periods, such as the over 82% dip in 2018 and the over 67% loss in 2022. Similarly, Solana experienced a decrease of over 90% in 2022.
With a potential closing range of $500 to $700 in 2025, the altcoin could retrace to as low as $200 once the bear market commences.
However, the coin could rebound to around $250, as indicated by the critical level of $264 highlighted by the PPS.
Price Predictions 2027
Historically, the year following a bear market tends to be mildly bullish on several cryptocurrencies as they attempt to recover and reclaim lost levels.
For instance, the value of the apex altcoin surged from $130 to $363 in 2019 and from $1,192 to $2,447 in 2023. Similarly, SOL experienced a significant 900% gain in 2023. If this trend continues, the asset may reach between $300 and $500 by the end of 2027.
