Solana’s bull run has hit a temporary roadblock as the high-performance blockchain’s native token, SOL, experiences downward pressure. Trading at $213, SOL has registered a 6% decline in the last 24 hours, prompting investors to question whether the asset can recapture its recent high of $240.
The current price correction comes amid broader market uncertainty, with SOL showing particular vulnerability to selling pressure. The weekly chart reveals a concerning pattern, with SOL declining 5.4% over the past seven days, while the two-week performance shows an even steeper drop of 9%.
Despite the short-term bearish momentum, Solana’s long-term trajectory remains notably positive. The cryptocurrency has delivered extraordinary returns to investors over the past year, with an impressive 195.3% increase. The monthly timeframe also offers some encouragement, showing a 4.5% gain over the last 30 days.
Solana shows a neutral outlook
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Market sentiment indicators present a nuanced picture of Solana’s current position. Technical analysis points to a neutral outlook, suggesting a potential consolidation phase rather than a definitive trend reversal. However, the crypto Fear & Greed Index reading of 78 indicates “Extreme Greed” in the market, a signal that historically precedes significant price corrections.
Looking at market participation, Solana’s recent performance shows relatively modest volatility at 5.68% over the past month. The asset has recorded green days in 43% of trading sessions during this period, reflecting the ongoing battle between bulls and bears.
Forward-looking projections offer a glimmer of hope for SOL holders. CoinCodex’s analysis suggests a potential upside of 14.90%, with price targets reaching $247.45 by January 9, 2025. This forecast, combined with current market metrics, has led analysts to maintain a positive stance on SOL accumulation at current levels.
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The $213 price point represents a critical technical level for Solana. A sustained hold above this threshold could provide the foundation for a recovery toward the $240 mark.
