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The fears around the Federal Reserve unleashing fresh stimulus measures have sparked concerns, causing Bitcoin to crash below the $100k level before a minor bounce. The Solana price followed the same trajectory, dropping by more than 22% since January 19th, 2024.
As investors ponder the fate of crypto markets following the recent declines, many are worried about whether a more bearish scenario is coming for the Solana price. However, some optimists still believe that SOL can hold strong as it has since October 2023.
Solana Price Analysis as SOL Drops 22.5% In 8 Days
The opening hours of January 27th, 2024, saw a huge red candle forming on the Solana price chart, only slightly shorter in length compared to the last day. As fear looms around the formation of a bearish engulfing pattern, the SOL price remains above the $200 mark.
Solana is currently trading around the $230 level with $217 acting as its crucial support. The current market capitalization of this “Ethereum Killer” is around $136 billion.
A drop below $217 could crash the Solana price further to around $181-$169, which is a very crucial zone. A drop below this level will practically demolish the uptrend Solana has been on since last year. The bearish momentum could fuel further sell-offs.
On a positive note, if SOL bounces from its crucial support, investors could be inspired to rally the crypto’s price, making it possible for the token to reach new highs.
Why Did The Solana Price Drop?
Solana’s recent price drop has been a result of different factors. The current regulatory landscape around crypto is in turmoil, and according to some experts, like Arthur Hayes, co-founder of BitMEX, investors should prepare for a mini financial crisis.
The founder has predicted that the BTC price could drop to $70k to $75k, and as the Federal Reserve will start to print more money, the crypto market will head towards $250k this year.
Reversing the order of my tryptic essay series.
The Ugly will be published tomorrow morning. I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year. pic.twitter.com/wohvbKkXOf
This indicates that the current slump in the Solana value might be a short-term pullback.
Another reason behind Solana’s dive is its association with the TRUMP launch. BBC has reported that many consider the launch of the Official TRUMP Meme Coin a mockery of the cryptocurrency economy.
“Trump’s comments about not knowing much about the coin back up my opinion that he is making a mockery of the industry. It’s a stunt,” Danny Scott, CEO of CoinCorner, told BBC.
Since TRUMP was developed on the Solana blockchain, people’s anger over that meme coin could have transferred to Solana, causing its price to follow the trajectory of Bitcoin’s recent crash.
Solana Price Prediction for 2025 and Beyond
2025
While the 1-day interval candlestick chart shows a grim view of the Solana price, zooming out and looking at the token’s 1-week interval candlestick chart shows that while the market is volatile, bearish news might only have a short-term impact on this token.
For instance, the week in which Solana was able to reach its all-time high of $295 was the same week that pushed the token’s value to around the $168 mark. This indicates strong community support for the project, which might persist for most of 2025.
On the development front, things are looking green for Solana. One of the most recent tweets by Kawz shows that Solana continues to dominate in terms of app revenue.
We told you it was going to be app szn https://t.co/xql4McM8CO
— Solana (@solana) January 26, 2025There are also innovations related to AI Agents, which means Solana is also tapping into the artificial intelligence narrative, one of the hottest trends right now.
Combined with the anticipated bull run in the cryptocurrency space, these developments suggest that the SOL price could trade in the $300-$350 range by the end of 2025.
2026
2026 will be the year to watch how much closer America gets to becoming the crypto capital of the world. Developments within the Solana ecosystem should also be watched closely. It is likely that Solana will maintain its current level of dominance within the cryptocurrency space next year.
Despite its many shortfalls, there has been a wave of new updates within its ecosystem that could help it grow. Jupiter, the leading perpetual exchange network on Solana, is also experiencing more growth. As more Solana meme coins arrive, the SOL price could shoot up in value. Our optimistic view is that Solana could reach $400 by 2026.
2030
There is a possibility that the cryptocurrency space won’t be the wild west it is today by 2030. With crypto regulations being introduced by then, and the pace at which blockchain technology is being discussed, its becoming a norm in the future is not out of the question.
Solana, with its fast transaction speeds and low transaction fees, could become a poster child of inclusive blockchain ecosystems.
Solana memes could bridge the gap between Web3 and Web2 spaces, bolstering blockchain adoption. But the Solana price may not have the same level of increase, since parabolic gains could be a thing of the past by then. Considering these factors, Solana could trade at around the $410 mark by 2030.
Solaxy – World’s First L2 Solution for Solana
Since Solana’s growth in the future hinges as much on its own developments as on external factors, multiple unique solutions are emerging to allow the people’s favorite blockchain to reach its potential. One is through an L2 solution, which Solaxy is providing.
Described by the official white paper as Solana’s first layer 2 solution, Solaxy’s major appeal lies in its memetic style while still showing utility. It aims to provide off-chain transactions to Solana users, so that investors can get a platform with near-infinite scalability that does not experience any downtime.
Solaxy has made offering an L2 solution its objective so that more meme coins, perhaps an ecosystem akin to a “meme coin galaxy,” could be built on the Solana blockchain. This adds to people’s belief that Solana has been able to remain relevant in the market due to the meme coins that have been created on it.
Popular publications like NFT Evening have named Solaxy one of the best meme coin presales to support, especially since Solaxy has raised over $15 million within a relatively short time.
Its staking perks are also garnering attention from investors looking for long-term holding opportunities.
Furthermore, despite TRUMP’s crash, the Solana meme coin narrative has not diminished, as SOL-based meme coins like BONK continue to enjoy bullish sentiment from the crypto community.
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