Solana (SOL) Price Prediction: No Rebound Yet as the Token Drops to New Lows

Since falling from $160 on September 30, the Solana (SOL) price has continued to hit lower levels. Recent data suggests that the token might drop to a region it has not reached in almost a month.

Solana’s (SOL) price has continued hitting lower levels since falling from $160 on September 30. Recent data suggests that the token might drop to a region it has not reached in almost a month.

At the time of writing, Solana’s price is $135.52. But with a grim outlook, here is why SOL could fail to notch a quick recovery.

Buying Solana Now Looks Risky

Solana’s Sharpe ratio has dropped, according to data from crypto intelligence platform Messari. The Sharpe ratio gauges a cryptocurrency’s potential risk-adjusted return.

When it rises, it implies that the potential reward of investing in the asset could be worth the risk. But for Solana, the ratio has fallen to -1.11. Five days ago, this same metric had a reading of 2.57, which suggested a possible SOL price increase.

Currently, since the ratio is on the brink of falling into negative territory, it suggests that buying SOL at the current value might not bring a positive return on investment.

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Moreover, the Chaikin Money Flow (CMF) is another indicator that supports the bearish thesis. The CMF considers the volume up or down at the end of a trading day. With this data, the indicator can tell whether the market is accumulating more of a token or distributing it.

When the CMF increases, accumulation takes place. On the other hand, a decline in the indicator’s reading suggests distribution. According to the daily SOL/USD chart, the CMF has dropped to the negative region, suggesting that sellers are dominant, and Solana’s price could evade a quick bounce.

SOL Price Prediction: No Rebound Yet

On September 30, Solana’s price was $158.53, with expectations high that October would produce more gains. But since then, SOL has lost almost 15% of its value and is currently priced at $135.52.

According to the daily chart, SOL could not hold the $142.21 support, so the token dropped below the threshold. Currently, the altcoin is about to hit the 23.6% Fibonacci retracement.

If this happens, Solana’s price might hit $130, possibly falling below the zone in the short term. Failure to hold the $130 support line could lead SOL down to $124.92.

How To Buy Solana (SOL) And Everything You Need To Know

On the other hand, if bulls defend the $130 region, this prediction might not come to pass. Instead, SOL’s price could jump to $161.95.

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