Solana SOL/USD Forecast as Price Drops Again

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  • Solana is down 3% in the past week amid bearish pressure

  • An Influential Analyst Predicts $375-$739 for Solana

  • SOL has retested the key support with flashing red lights

Solana SOL/USD has lost 3.24% in the past week to trade slightly above USD 32. The second largest proof-of-stake network after Ethereum, it currently has a market cap of $11 billion.

According to its website, Solana is a decentralized computing platform. The layer one network is powered by SOL, a token used to pay transaction fees and utilities. Despite the current value, which is nothing compared to the ATH of $260, there are positive predictions.

A popular anonymous analyst predicts a bull run for Solana. The strategist, who also hosts InvestAnswers, bases his forecast on market dominance. He said that in a hypothetical situation, Solana could command a market dominance of 10-20%.

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The Youtuber, who currently has more than 400,000 subscribers, claims that Solana could reach $375. In the same breath, he thinks Ethereum could reach a whopping 25% market dominance and $15,450. At best, the optimist believes Solana could trade at $739 given a 20% market dominance.

While it may sound too good to be true, Solana remains a formidable low-1 that rivals Ethereum. The network is built on a promise of high scalability. Recently, Solana integrated its first layer-2-scale solution, Nitro. The layer integrates Cosmos and IBC platforms.

Other than the fundamentals and rosy forecasts, Solana is a bearish market. It has retested key support and the TVL is also in the red. At the time of writing, Solana TVL fell 1.22% to $1.29 billion in the past day, according to data from DeFi Llama.

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SOL retests $32 support

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Source: TradingView

From the above tech chart, SOL has retested support. The digital asset is trading below the 20 and 50 day moving averages. The duo MA was able to bring forward consolidation points. Furthermore, the Stochastic Oscillator has entered the oversold zone, currently below 20.

closing thoughts

Despite being under bearish pressure, Solana remains an important token to watch in the crypto space. How quickly the token can turn its fortunes around is a matter of debate. At this point, the current price is not a good entry point and patience should be exercised until a trend reversal is observed.

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