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    Estimating the possibility of Solana falling below $100 soon!

    Investing $100 in Solana a year ago would have just given a return of $5000 on investment. The digital asset has undoubtedly taken the market by storm and over the past few months, its valuation has gone up parabolically.

    However, thanks to a major invalidation on the daily chart, there could now be a correction for the coin. Especially since the bullish momentum is collectively taking a hit across the industry.

    Solana is no longer rallying on its own. And, as per the recent developments, it may go through a period of correction in the next few weeks.

    Analyzing the current market structure of Solana, the asset reached an all-time high of $215 on September 9. However, it was unable to sustain the position above the $200 level for a long time. With bitcoin firmly consolidating between $45,000 and $50,000 during that period, it could be relatively easy for Solana to continue on its bullish path as liquidity and capital flows were evident throughout the industry.

    However, with bearish dynamics now coming into play, it is important to understand the apparent liquidity pool currently in place for the asset. A major invalidity faced by Solana at press time was the crossover between the 20-simple moving average and the 20-exponential moving average.

    The SMA moving above the EMA on the daily time frame is considered a strong bearish signal. For example, at the time of writing, the property was far from recoverable of any kind.

     

    Now, in terms of levels identified, the previous trend of Solana suggests that the asset has a tendency to bounce back from the 0.618 Fibonacci level. In early 2021, the asset rose to $64 and dropped to $23 in July. A similar reciprocal of the trend would see Solana below the $100-mark, with the current 0.618 Fibonacci line residing near the $96-mark.

    As far as the support is concerned, the previous weekly high at $64 is concerned. This could be tested if bearish pressure persists across the ecosystem.

    Apart from the market correction, Solana has not experienced positive development as its network saw 17 hours of downtime after the DDoS attack. Downtime has been cited as one of the primary reasons for the 35% collapse last week.

    However, to be fair, ripe credit was already volatile above $200, and profit-taking was massive.

    In contrast, according to CoinShares’ Digital Asset Fund Report, institutions have ignored Solana’s minor hiccups as the asset class recorded $4.8 million in capital inflows.

    While this is positive, it is important to note that such capital investments are made with the future in mind. No immediate returns. Therefore, a recovery may or may not appear based on this investment as profit taking on the retail side of the market controls the larger market.

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