After a bumpy weekend solana The price tried to recover from the $120 support level. However, it failed to break above the $150 level on Monday. Recent tensions shook the global financial sector on Friday, causing a massive sell-off in the price of Bitcoin and major altcoins such as Ethereum, Solana and XRP.
BitcoinDespite the downtrend ahead of ‘s halving in 2024, prices in the crypto market exhibited extreme volatility amid modest gains on Monday. According to CoinGecko data, Solana increased by 4.4% to $142 at press time, while its cumulative total market value increased by 2.1% to approximately $2.5 trillion.
Solana Price Projection
Crypto The bullish outlook for the market quickly turned pessimistic during U.S. business hours on Monday. SOL, which broke above $150 earlier today, has pulled back a four-hour candle to $142.
The $150 resistance level is strengthened by the 0.618 Fibonacci ratio and threatens another sell-off towards the $120 support level, especially with the Relative Strength Index (RSI) reversing the downtrend at 41.
Another daily close below the RSI trendline support/resistance could indicate increasing selling pressure in the coming sessions or even days.
The next few days will play an important role in determining the direction SOL price will take. In particular, if support is provided to the 0.786% Fibonacci level around $138, a recovery could occur that increases Solana’s chances of rising above $200 towards 2024. Other support areas to watch include the ascending green trend line and the major buyer squeeze near $120 this past weekend. These support levels represent key points for a possible recovery in Solana’s price.
SOL token holders quickly reacted to the sudden decline in the crypto market by recalling the funds they had invested in smart contract protocols in the Solana ecosystem.
Total value locked (TVL), which represents the cumulative value of all assets held in the Solana DeFi sector, fell to $3.71 billion from a yearly high of approximately $4.89 billion on March 30, according to data from Defi Llama.
This decline, which has been continuing for more than two weeks, indicates that the negative atmosphere regarding Solana’s future is increasing.
If DeFi TVL is increasing consistently, this means that holders have a positive long-term view on the SOL token and are therefore willing to ignore unrealized profits to take part in securing the network for staking rewards while targeting higher price levels.
As TVL decreases, so does the future outlook of the protocol and the associated value. It may be wise to pay attention to recoveries in TVL as a sign of future appreciation in the short term.
Whether the SOL price can rise to its all-time high of $260 in 2024 will depend on investor interest in the token and the outlook for the market following Bitcoin’s halving later this week.
Investors will likely start FOMO with a second break above $200. This move will confirm the bullish strength in Solana and the ability of the price to reach a new record high within the year.
