SOL has declined by 4% in the past 24 hours, with the Solana price faltering to $186.82 as the wider cryptocurrency market falls by 1.5% today.
The altcoin has been strong enough in recent weeks to hold onto a 9% gain in a week and an 84% increase in the last 30 days, while also rising by 800% in a year.
This means that last night’s modest fall amounts mostly to holders taking some profits, with the overall picture for SOL remaining largely positive.
It should therefore return to strong growth once the market as a whole picks up again, which it could do very soon.
Solana Price Prediction as SOL Drops 4% Overnight – What’s Going On?
What’s encouraging about Solana’s chart is that it’s reaching a position where a rebound should arrive soon.
For instance, its relative strength index (purple) has bounced a little today after dropping to 35 earlier this morning, so it does seem as though it has bottomed out.
Source: TradingView
Having said that, SOL’s 30-day moving average (yellow) continues to slide towards its 200-day (blue), with it being possible that the coin may not return to growth until the 30-day has fallen further.
What’s interesting is the altcoin’s resistance (red) and support (green) levels are converging towards each other, implying that a breakout (or big drop down) is not too far away.
We have also seen a couple of very large ($100 million+) transfers of SOL in the past day or so, although it’s not clear whether the parties involved are preparing to sell or accumulate.
1,009,948 #SOL (192,063,520 USD) transferred from unknown wallet to unknown wallethttps://t.co/euP0TOzgeE
— Whale Alert (@whale_alert) March 26, 2024
Either way, it’s clear that there remains a strong demand for SOL among traders, and that the altcoin should recover healthily once the market reenters a period of expansion.
There are numerous reasons to think that such a period will arrive before long, and that 2024’s best months are still ahead of it.
Firstly, the Federal Reserve has signalled that it will introduce rate cuts later in the year, something which could certainly boost demand for assets such as cryptocurrencies.
Secondly, the market is still looking forward to the next Bitcoin halving and also Ethereum ETFs, with both likely to precipitate considerable market-wide rallies.
And as one of the strongest alts in the market, SOL will benefit from all of this.
The Solana price could therefore reach $200 in the next few weeks and $250 by the early months of the summer.
Diversification with High-Potential Meme Coins
SOL remains one of the most promising major tokens in the market, yet traders may find it a good idea to allocate a portion of their portfolios to small-cap tokens, including new meme coins.
While new meme coins are often a risk, the best can post massive market-beating gains as they go viral and spark FOMO.
One new meme token likely to do this is Slothana (SLOTH), which launched its presale a few days ago and has already raised $685,000.
Send SOL to EnSawje2vQSQKtGbPYdXEuYKm2sHgeLKJTqCmrDErKEA
— Slothana (@SlothanaCoin) March 25, 2024
Running on Solana, it has adopted memes related to cryptocurrency trading culture, playing on the desire of many retail traders to make enough money to leave routine work behind.
Its presale invites investors to buy tokens at a price of 1 SOL for 10,000 SLOTH, which works out at around $0.019393 per coin.
It’s not clear whether there will be subsequent stages that will incrementally raise this sale price, yet Slothana is set to release further details on its tokenomics and roadmap soon.
What is clear is that Solana-based meme coins have had a big six months or so, with SLOTH shaping up nicely to fit into this trend.
Site update for Slothana incoming! Get ready to embrace your inner sloth with our new ‘Lazy Sloth Buy Widget’ on the way! Send SOL with ease and let’s get ready for lambo #Slothana #LazyCrypto #MemeCoin
— Slothana (@SlothanaCoin) March 27, 2024
Indeed, its team was also responsible for the successful Smog (SMOG) token, which rallied strongly earlier this year after ending its presale and listing.
As such, it has a strong chance of closing a successful presale and then rallying big once it lists on trading platforms.
Some SOL-based meme coins have witnessed gains of more than 10,000% or even higher since listing (e.g. DogWifHat), so SLOTH could be in for a massive rally in a few weeks.
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