Summary
TLDR: Solana’s price is showing signs of bearish developments due to broader market cues and declining investor interest. The correlation with Bitcoin could lead to further decline, potentially dragging SOL down to $100. Investors are skeptical as shown by a decrease in Open Interest. If bearish cues continue, SOL could drop to $100, but strong support levels at $100 and $120 could prevent further losses.
Key Points
1. Solana’s price is showing signs of bearish developments primarily owing to the broader market cues and declining interest of investors.
2. Bitcoin’s Influence on Solana: Solana’s price tends to mostly follow the broader market cues, with a high correlation to Bitcoin. Given Bitcoin’s potential further decline, it could drag Solana’s price down as well.
3. SOL Price Prediction: Decline to $100 – If the bearish cues dictate the price action, Solana’s price could correct considerably, potentially reaching $100. This critical support level may prevent further losses and lead to a potential rally towards $150 if Solana bounces off the $120 support level.