Solana price showed a modest 0.65% surge during the Tuesday market recovery to trade at $132. Despite the uptick, the daily candle shows a long-wick rejection, indicating the pressure of overhead selling and the potential for further correction as the death cross approaches.
Will Solana Price Drop 10%? Death Cross Signals Possible Correction
Over the past two weeks, the Solana price has traded sideways, trying to stabilize above the multi-month support of $120. With no follow-up on either side, this consolidation indicates a lack of dominance from buyers or sellers to guide a directional trend.
However, with the prevailing correction intact, the daily chart shows a looming death crossover of 50-and-200-day EMA for the first time since October 2023. This potential drop should be approached cautiously as it could intensify the bearish momentum, leading to a 9-10% fall in Solana price prediction to rest $120 again.
A breakdown below the $120 support could further strengthen the seller’s grip and drive a 12.5% drop in seeking support at the lower trendline of the range pattern intact since March 2024.
SOL/USDT – 1d Chart
Moreover, the data from Santiment analytics shows a steady decline in Solana’s development activity from late July to mid-September 2024. After peaking in late July, the development activity metric has dropped significantly, now sitting at 133.66, indicating reduced developers’ contributions to the Solana ecosystem.
Development Activity | Santiment
This decline may suggest a slowdown in ongoing projects, updates, or general ecosystem engagement. An underperforming development activity metric could concern investors, suggesting reduced momentum in network activity.
Moreover, the Solana total volume locked (TVL) shows a weakening impulse to stand at $4.8 Billion currently. The consolidation indicates the network struggles to attract new capital or retain existing investments. This prolonged consolidation could signal diminishing demand for Solana and drive further correction in SOL price.
On the contrary, if the $120 support or lower trendline stands firm, the buyers recuperate the bullish momentum amid the upcoming breakpoint conference event. Thus, the Solana price may prevent a major correction until the daily chart rectangle pattern is intact.
The post Why Solana Price Could Drop 10% Soon Due to this Popular Bearish Signal appeared first on CoinGape.
