Solana ( SOL ) is witnessing a short-term correction, which has resulted in the altcoin losing its shot at reaching $200.
The chances of SOL climbing back up are very high, either, since mixed market signals suggest a different outcome.
Solana Set for Sideways Movement
Solana’s price fell to $166 at the time of writing, slipping below the crucial support of $169. This has propelled the altcoin’s bearishness, evident in the Moving Average Convergence Divergence (MACD).
The MACD is a momentum indicator that measures the difference between the 12-day and 26-day exponential moving averages (EMAs). It generates buy and sell signals through the MACD Line and the 9-day EMA Signal Line crossover.
Solana is witnessing the first bearish crossover in nearly four weeks, which is not a good sign for price.
Furthermore, altcoin shares a very high correlation of 0.93 with Bitcoin. This is both a boon and a bane for SOL. This is because should the world’s biggest crypto asset mark a rally, Solana’s price would benefit by following its cues.
On the other hand, if BTC falls, SOL may not be safe from a drawdown either. At the moment, the latter seems to be the more probable outcome. This is because Bitcoin’s price recently lost the critical support floor of $68,500 and could look at further decline.
In turn, Solana could observe a decline, too.
SOL Price Prediction: One of the Two
Solana’s price is looking at either consolidation or a drop. The aforementioned factors suggest the latter outcome. The result would be SOL falling to the low of $156, which could send the “Ethereum killer” to $137.
However, if the broader market cues turn positive and Bitcoin’s price recovers, Solana’s price could benefit, too. This would counter the bearishness SOL is experiencing at the moment, resulting in potential consolidation between $169 and $156.
The optimism could eventually lead to a breakout above $169, enabling a rise to $200, invalidating the bearish thesis.
