Solana (SOL) is facing a potential 20% price drop after being rejected at a crucial resistance level of $90. The altcoin, with a fully diluted valuation of approximately $51.7 billion, fell 4% in the last 24 hours to trade around $82.97. Despite this, SOL has gained 7.82% over the past week, demonstrating resilience amid the ongoing Middle East crisis.
The SOL price has been confined within a narrow range of $89 to $77 over the past month, indicating weak bullish momentum. Technical indicators, such as the MACD on the 4-hour chart, have flashed a sell signal, while the Bollinger Bands suggest an imminent breakout. On-chain data reveals renewed institutional demand, with net cash inflows of $53.8 million into Solana investment products last week, and U.S. spot Solana ETFs seeing $16.8 million in inflows on Monday.
Despite increased institutional interest, analysts remain cautious. Crypto analyst Ali Martinez suggests that SOL could drop to $65 if it falls below $77, or rise to $107 if it breaks above $90.
Solana Faces Potential 20% Drop Amid Tight Trading Range
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