Solana (SOL) Price Prediction: SOL Tumbles 7% to Retest the Critical Fair Value Gap Support Zone

The Solana price plunged 7% in the past 24 hours to trade at $183.50 as of 8:13 p.m. EST on trading volume that slumped 42% to $6.9 billion, according to CoinGecko.

Solana price plunged 7% in the past 24 hours to trade at $183.50 as of 8:13 p.m. EST on trading volume that slumped 42% to $6.9 billion, CoinGecko data showed.

Solana On A Bearish Trend

The SOL/USDT chart on a 12-hour timeframe showed that the Solana price initially followed an uptrend, as evident by a series of higher highs and higher lows that culminated around its all-time high of $264.35. However, after reaching this peak, the price began a clear downtrend, marked by consistent lower highs and lower lows.

One notable aspect is the Fair Value Gap (FVG) marked in red, which indicates a potential liquidity zone around $155–$165. The Solana price is currently retracing toward this zone, which could serve as a support level, offering buyers a point of interest.

Moreover, the price of Solana has recently broken below both the 50-day and 200-day Simple Moving Averages (SMAs), a bearish signal that suggests further downside momentum in the short to medium term.

The Relative Strength Index (RSI) is at 35, nearing oversold territory (below 30). This suggests that while the market is bearish, it may be approaching a point where sellers are exhausted, increasing the likelihood of a short-term relief rally or consolidation.

SOL/USDT Chart Analysis (Source: Tradingview)

Solana Price Prediction: What’s Next?

The overall Solana price outlook suggests that the asset is currently following a bearish trend, with the bears capitalizing on the formation of the rounding top pattern. The pullback to the FVG aligns with a typical corrective structure following a steep downtrend, indicating that the market might seek to fill this gap before finding significant directional strength. If the bears continue pushing the Solana price down, SOL could retrace to the $155 zone.

However, if the Solana price fails to hold the FVG as support, the bearish trend could deepen, with the next target around $151, based on the distance covered by the rounding top pattern.

A bounce from this level could lead to a relief rally, targeting resistance levels near $186 or the 200-day SMA around $190.

As the Solana price declines, investors are still snapping up the new Solana meme coin Solaxy (SOLX), which 99Bitcoins, a popular crypto channel on YouTube with over 719K subscribers, suggests could rally 100x after launch.

The Best Alternative To Solana

As the first Solana Layer-2 solution, Solaxy (SOLX) has already secured over $4.2 million in its presale.

Despite Solana's impressive performance in 2024, issues like spam transactions and network congestion persist. Enter Solaxy, promising significant performance, scalability, and customization improvements.

Solaxy combines Solana's power with innovative rollup architecture to enhance the user experience for both developers and end-users.

🚨 Solaxy is now live in Upcoming Tokens! 🚨@SOLAXYTOKEN gives holders an opportunity to join the first-ever Solana Layer 2 blockchain.

Solaxy is set to enhance blockchain innovation through limiting congestion, reducing failed transactions, and improving scalability on SOL.… pic.twitter.com/satNF6zFNF

— Best Wallet (@BestWalletHQ) December 17, 2024

The native token of the Solaxy network, $SOLX, is multi-chain, pulling activity and buyers from both the Ethereum and Solana chains and providing a path of entry into both blockchain ecosystems.

By buying and holding SOLX, users can also earn passively through the platform's staking mechanism, which offers a sky-high annual yield of 1,143%.

Investors interested in joining the presale can visit the official Solaxy website to buy SOLX tokens at the current price of $0.001574 each using BNB, ETH, USDT, or bank card.

Buy before a price hike in about 10 hours to secure the best deal.

Visit SOLX here.