A surprising development for the network, Solana (SOL) has lost a remarkable $3 billion from its market cap in the last 24 hours alone. Indeed, the decline has arrived parallel to a bullish correction taking place in the market currently. Subsequently, Solana is one of the extreme examples of a reversal from gains throughout the sector last week.
The drop in Solana’s market cap equates to a more than 6% decline over the last day. Specifically, this shows that the asset’s overall value has fallen from $48.58 billion to just over $45.5 billion. Moreover, that has ultimatley influenced a drop of more than 6% in the price of SOL according to CoinMarketCap.
Source – NC
Also Read: 3 Reasons Why Solana Might Break Out This Year

Solana Suffers $3 Billion Correction as Price Continues 10% Drop

Throughout 2024 thus far, the digital asset market has experienced overwhelming positivity. Indeed, a host of assets have seen further increases through the first two months of the year. Moreover, they have been led by Bitcoin (BTC) which firmly surpassed the $52,000 mark last week.
However, a correction is taking place, with some cryptocurrencies hit harder than others. Specifically, Solana (SOL) has lost $3 billion from its market cap in the last 24 hours alone. The development is certainly a difficult one for the asset and has preceded a fall in the value of the SOL token.

Source – Unsplash
Also Read: Solana’s BONK Surges on Speculations for a Possible Learn and Earn Campaign with Revolut
The price of SOL is currently just above $103 but is down more than 6% over the last 24 hours. Subsequently, those losses are only magnified when it is put in a greater context. Indeed, over the last week, the asset is down more than 10.7%. Yet, it is still up more than 16% over the previous months, noting that things may not be as dire as they appear.
There is little circumstantial evidence that explains the drop, with the Solana ecosystem privy to some positive developments recently. Within the DeFi sector, the total value locked in Solana projects surpassed the $2 billion mark this week. Moreover, the value staked is currently at $1.98 according to DeFi Llama today.
Now, all eyes are on where the price of SOL could go from here. Specifically, the market is eager to observe if the fall could perpetuate, or reverse in the short term. There is little optimism, however, as the relative strength index for SOL has fallen below 50. Therefore, reinforces that further declines could be in play for the digital asset.

Solana Faces Investor Exodus At $100 Resistance: What’s Next For SOL?

• Solana’s value is declining, with prices nearing the $100 mark.
• The recent drop is in sync with Bitcoin’s fall from $53,000, leading to widespread liquidations in the crypto market.
• Solana’s network activity has decreased, with a 30% drop in active addresses from a peak of 1.02 million to around 691,000.

Solana has witnessed waning investor interest recently, with prices sliding near key resistance around the $100 threshold.
The drop aligns with Bitcoin’s own rejection at $53,000 peaks that triggered cascading liquidations across crypto markets earlier this week. On-chain data now warns of additional downsides as bearish momentum builds.
In the past 24 hours alone, crypto exchanges saw total liquidations top $300 million, with bullish traders bearing the brunt at over $220 million in forced sells.
Solana itself contributed, with nearly $10 million worth of long positions unwound. The cascade of selling pressure plunged its SOL token from local highs.

Solana plunges alongside Bitcoin and Ethereum

The recent price slide stems from anxiety amongst investors following the market correction when values neared testing upside barriers.
Closely tracking Bitcoin and Ethereum, Solana similarly faced resistance, with both bellwether assets also retracting from their $53,000 and $3,000 ceilings, respectively.
On-chain statistics reveal declining network activity for Solana alongside the drop. Active addresses have plunged 30% off their 1.02 million peak in recent weeks to currently sit around 691,000 – indicating fading user demand. Whales may interpret this usage metric as a negative signal, exacerbating volatility.
However, a slight silver lining comes via the value transferred on Solana rebounding back above the $1 trillion mark after recently tagging $218 billion lows. The recovery does suggest residual exchange activity and flows, which could stabilize declines.
Presently, bears have commandeered the price charts to force SOL below critical support early Thursday. Sellers managed to conquer the key Fib line at $103 to turn that into overhead pressure now. Prices currently trade around $102—down over 6% daily.
Absent a swift reclaim of $103, downside projections eye the next demand zone at $93. Any daily close below there risks sparking a capitulation wave towards the crucial $80 floor. But a strong reaction here may stimulate a consolidation between $80-$108 until bulls regain control of the market.
To maintain positive momentum before then, SOL needs to defend $100 in the interim while setting up a push back above its 20-day exponential moving average.

Solana Price Drops 5%: Will SOL Fall Down to $20 Again?

Source: Midjourney
SOL has fallen by 5% in the past 24 hours, with the Solana price dropping to $103 amid a market-wide correction.
Today’s drop extends a largely unimpressive week for the alt, which has declined by 11% in the last seven days, with traders seemingly taking profits after a largely positive phase.
Indeed, SOL remains up by 18% in a month and by 300% in the last 12 months, making the altcoin one of the best-performing top-50 alts across these periods.
And with the market still likely to become more bullish as it approaches April’s Bitcoin halving, SOL looks on course to enjoy further gains in the not-too distant future.

Solana Price Drops 5%: Can SOL Fall Down to $20 Again?

SOL’s chart suggests that the coin may have to weather a short-term correction before it can properly pick up again.
Its indicators are taking a dive today, with its relative strength index (purple) – which is a measure of momentum – dropping below 50 a few hours ago.
This is a sign of growing selling pressure, with SOL’s 30-day average (yellow) also telling a similar story.
Source: TradingView
The latter has flatlined and begun dipping in the past couple of days, and given that it had been well above the 200-day average (blue) for several months, it is due a sustained fall.
What’s concerning for the SOL holder is that the coin’s current price is falling quickly towards its support level, in green on the chart above.
It will therefore be very instructive to see whether the Solana price can resist a fall below $100, which is key psychological support.
If it drops decisively below this level, it could spook more holders into taking profits (or cutting losses) and selling their coins.
In other words, SOL will have to endure more losses, even if it’s unlikely that it would fall all the way down to $20.
In the longer term, SOL’s overall prognosis continues to look good.
Aside from wider market bullishness (which follows from rising Bitcoin ETF volumes), its recent progress stems from Solana’s growth as a platform.

Change happens fast. Solana now rivals or surpasses Ethereum across:
– DEX Volumes
– NFT Volumes
– Active Addresses
– Transaction Count
– Stablecoin Transfers
“But Solana isn’t decentralized 😤”
Reality: Solana has ~40% the amount of nodes as Ethereum, they’re only ~5x more… pic.twitter.com/ZBuLiTcXmf
— Ryan Watkins (@RyanWatkins_) December 19, 2023

For instance, Solana has become arguably the biggest layer-one network for NFTs and meme coins in recent months, with its volumes often surpassing those for Ethereum.
Notwithstanding a recent outage, such growth is likely to continue, meaning that the Solana price will rise in parallel.
After its current correction it could reached $150, possibly by the end of spring.

Other High-Potential Altcoins

While SOL gets its correction out of the way, many traders may choose to turn alternative tokens, particularly newer coins in line to list on new exchanges and rally.
There are a variety of new tokens ready to do this, with of the most promising being Smog (SMOG).
SMOG is a Solana- and Ethereum-based meme token that recently listed on DEX aggregators such as Jupiter and Birdeye, where it has rallied by over 3,500% since going live.
Source: Birdeye/TradingView
What’s interesting about SMOG is that, in contrast to 95% of other Solana-based meme coins, it has been able to consolidate its early price gains.
There’s a reason for this: the meme coin features a very bullish airdrop system, which will regularly reward participants based on how many SMOG tokens they hold and for how long.
This system has already begun incentivizing long-term holding, which accounts for why SMOG’s price has stabilized.

$SMOG 🐉 One #Memecoin To Rule Them All🔥
Buy or stake ERC-20 $SMOG tokens through our website for 42.0% APY.💰
Tokens staked are locked for 90 days, with rewards withdrawable throughout. 🔒💸
All tokens purchased through the site will be automatically staked.
Link in bio! pic.twitter.com/Y98lZcjuk6
— SMOG (@SMOGToken) February 10, 2024

SMOG has also been successful in growing its online following, with its X account now counting more than 25,000 followers.
Aside from its playful use of memes, it has been able to do this partly because it is also running a number of quests for followers to complete.
These involve the completion of tasks, such as joining the Smog Telegram and following the coin on X, and they reward participants in SMOG.
Such tasks usually revolve around spreading word of the coin, which is again why it has been able to grow quickly.

And once it lists on additional trading platforms, it’s likely to accelerate such growth.
Investors can buy the token now by going to the official Smog website, while it’s also tradeable via Jupiter.
Buy SMOG Here
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Ethereum Price Prediction as Bulls Push ETH Toward $3,000 Level – Time to Buy?

Source: Midjourney
The Ethereum price has dipped by 0.5% in the past 24 hours, sliding to $2,895 as the wider crypto market suffers a similar pullback today.
Today’s slip allows ETH to cool off a little as it pushes towards $3,000, with the market’s biggest altcoin sitting on a 9% gain in a week and a 24% gain in a fortnight.
Such momentum is likely to return in the coming weeks, particularly as the market becomes more bullish in the approach to April’s Bitcoin halving.
And with Ethereum continuing to dominate the crypto ecosystem in terms of usage and transactions, ETH can only rise higher in the medium- and long-term.

Ethereum Price Prediction as Bulls Push ETH Toward $3,000 Level – Time to Buy?

ETH’s indicators are really hot at the moment, with the implication being that the altcoin may have to endure a brief correction before rising again.
Its relative strength index (purple) has risen to 80 in the past few days, and while it’s sticking to the same level for now, logic dictates that it needs to come down soon.
Source: TradingView
Its 30-day average (yellow) is also entering overbought territory, having begun rising steeply over a week ago now.
It has been well above the 200-day average (blue) since mid-November, something which again would suggest that the Ethereum price may have to take a haircut in the shorter term.
However, given that 2022 and much of 2023 were very bearish, ETH can more than afford to rise substantially across 2024 as a whole.
Not only have rising Bitcoin ETF volumes buoyed ETH along with the rest of the market, but recent news of applications to launch spot-based Ethereum ETFs is also likely to boost the coin’s price.

Franklin Templeton just joined the spot #Ethereum ETF race. pic.twitter.com/zJvk9seXe3
— James Seyffart (@JSeyff) February 12, 2024

Assuming that spot ETH exchange-traded funds receive approval and launch, the altcoin will experience a comparable boost to that enjoyed by Bitcoin.
Combined with Ethereum’s commanding position as the most popular layer-one network, ETH could reach new record highs this year.
Its blockchain accounts for $45.6 billion in total value locked in, or 60% of the entire market.
Last year it attracted adoption from the likes of PayPal and Coinbase, and given its ongoing rise, it’s likely that it will witness a few more similar events this year.
As such, the ETH price could reach $4,000 by the summer, before breaking its current ATH by the end of 2024.

Diversification with High-Potential Small-Cap Alts

Because ETH looks like it may correct in the near term, many traders may opt to diversify into alternatives at the moment.
One of the best strategies for diversification is to invest into small-cap tokens that are likely to gain new exchange listings, which can boost their prices.
One new alt in line to enjoy such a process is Smog (SMOG), a Solana- and Ethereum-based coin that listed on Jupiter a couple of weeks ago.
It has gained by well over 3,000% since its initial listing, and what’s especially encouraging is that it has held onto most of its early gains.
Source: Birdeye/TradingView
SMOG’s chart stands in stark contrast to the charts of most Solana-based meme tokens, which can tend to crash almost completely a few days after pumping.
Yet there’s a fairly simple reason as to why SMOG has been able to maintain its early lead, with the meme coin boasting an interesting and bullish airdrop system.
It will hold a series of airdrops over the coming weeks and months, with its drops providing more coins to holders who hold more SMOG tokens and have held them for longer.
By using such a mechanism, Smog is incentivizing longer term holding of its token, which in turn will help boost its price.

#SMOG #Dragons don’t forget about the Special #Meme Quest on #Zealy! 🚀
Create your best $SMOG Meme! 🎨
And remember the rules:
🐉 Has to feature $SMOG!
🏆 Has to show we have completed over 100K Quests! https://t.co/FdRKZQ0Tuh
— SMOG (@SMOGToken) February 17, 2024

There are other reasons to be bullish about Smog, with the token also recently launching ‘quests’ for followers and holders to complete.
Participants who complete quests – which include tasks such as joining the Smog Telegram and following the coin on X – receive rewards in SMOG.
This is another clever mechanism intended to grow Smog’s community, with the token already having  over 25,000 followers on X.
Investors can buy the token now by going to the official Smog website, while it’s also tradeable via Jupiter.
Buy SMOG Here
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.