Will Solana Price Drop to $50 in 2024? Here's What to Expect

Solana, the layer-1 cryptocurrency, has been trading sideways for over 7-months. This prolonged consolidation during the typically bullish fourth quarter signals potential weakness among SOL buyers and raises concerns about a possible renewed correction. Will the anticipated fall push the Solana price to the $50 level?

Solana, the layer-1 cryptocurrency, has been trading sideways for over 7-months. This prolonged consolidation during the typically bullish fourth quarter signals potential weakness among SOL buyers and raises concerns about a possible renewed correction.

While Solana currently holds a solid position in the market, a drop to $50 would represent a nearly 70% decline from its current price. At the time of writing, SOL is trading at $155 with an intraday gain of 0.34%.

If the circulating supply remains the same, the aforementioned price correction could plunge Solana’s market cap to $23.6 billion, losing its position in the top 10 cryptocurrencies.

However, several factors indicate that such a drastic decline is unlikely. Solana’s network has proven itself a serious competitor to Ethereum due to its ability to handle a higher volume of transactions at a fraction of the cost.

Following a severe setback from the FTX collapse, several analysts believe SOL is undervalued and is better positioned for recovery.

The Solana price prediction in the daily chart shows the consolidation of the last seven months as a bullish pennant pattern. Theoretically, this pattern is known to recuperate the bullish temporary consolidation before a decisive breakout.

The pattern offers solid support at the $120 level that could prevent the asset from dropping below $50.

On the other hand, the Solana total volume locked (TVL) has witnessed a sharp reversal from $3.8 Billion to $5.95 Billion — a 56% increase — in the last 11 weeks, as per DeFiLlama.

The rising TVL indicates the investor’s growing investors’ confidence as they pour more capital into the network’s DeFi protocols.

Furthermore, the number of addresses in the Solana blockchain has surged from 3 million to 4.89 million, accounting for 63% of the growth within a fortnight, as per theblock data.

This rapid increase implies heightened adoption and activity on the network, signaling strong user interest and engagement.

In the absence of a black swan event like a global recession, war, or severe liquidity crisis, the Solana price drop to $50 remains unlikely. The network’s robust ecosystem and market performance signal a bullish future for SOL rather than a sharp correction.

FAQs

1. What factors could potentially cause Solana to drop to $50?

2. How does the surge in Solana's blockchain addresses impact its price?

3. What is the significance of Solana's Total Value Locked (TVL) increase?

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