Solana (SOL) Just Hit Its Lowest Price in Seven Months – But One Top Analyst Says the Dip Won't Last Long

Despite the recent crash, the analyst calls for a massive rebound, predicting SOL will surge back to $265 by next quarter.

Solana (SOL) has fallen to its lowest price in seven months as the crypto bears remain in full control.

What Happened: After dropping to a low of $112 yesterday, Solana is trading at around $124, still down over 50% from its 2024 highs.

Open interest has also dropped to just $2.1 billion, while CFGI's Solana Fear & Greed Index stands at a low of 29 – firmly in "Fear" territory.

A major factor behind this sell-off is the token unlock from March 1, which released 11.2 million SOL tokens from FTX's bankruptcy liquidation.

At the time, that was around $1.6 billion worth of new supply flooding the market – more than enough to shake investor confidence.

On top of that, Solana's on-chain activity has nosedived, with active users dropping from October's high and transaction volumes plunging from $2 billion to $26 million.

Recent meme coin rug pulls and a sharp decline in Total Value Locked (TVL) have only added to the damage, making SOL's sell-off unsurprising.

Why It's Important: Despite the gloomy outlook, one crypto analyst remains optimistic about Solana's potential for a rebound.

In a recent video, More Crypto Online highlighted the possibility of a Wave B bounce sending SOL to $265.

"This is the third wave down, and if we zoom out, we can see that it's still making lower highs and lower lows. So it's confirming that we're still in a third wave," the analyst explained.

"Now, if we break out of this third wave, then we'll be entering a fourth wave, which is a retracement wave. This could send Solana as high as $186.17."

However, More Crypto Online believes that SOL could rise even further, potentially reaching $265 or even $360 in a super-bullish scenario.

"But for now, the first target is $265, and if we break out of that target, then we'll be looking at the next target, which is $360."

This optimistic call has left many Solana holders hopeful for a swift recovery.