Solana (SOL) price predictions remain bearish in wake of the cryptocurrency’s last 7% 24-hour decline.
The Solana price was last around $82, having fended off a test of $78 earlier in the day.
Traders are concerned that a bigger sell-off may be incoming, with the Solana price under its 21 and 50DMAs, and the broader market still dropping amid an unwinding of the optimism that built up ahead of the approval of spot Bitcoin ETFs.
SOL’s technical outlook worsened when it broke below a pennant structure and uptrend it had formed in recent months.
If the Solana price drops below key long-term support-turned-resistance in the $78 area, sell pressure could accelerate.
Solana bears would probably target a break below the 100DMA near $70, and of late November lows at $51.
Solana (SOL) Price Chart / Source: TradingView
Here’s Why the Solana Price Dip Might Not Last
Technicals and the broader market backdrop paint a concerning picture for the Solana price’s near-term outlook.
While near-term price risks are tilted to the downside, there are reasons to be optimistic that the dip won’t last.
That’s because various indicators pertaining to the health of the Solana ecosystem signal continued strength.
As per TheBlock data, the 7DMA of daily active addresses remains well above its 2023 levels at around 650,000.
The 7DMA of new addresses being created daily also remains elevated close to 400,000.
Elsewhere, the 7DMA of value being moved on chain remains way above 2023 average levels at close to $30 billion.
Meanwhile, though DeFi Llama data shows trade value locked (TVL) has fallen in recent weeks, the market cap of Solana-issued stablecoins has continued to rise.
That suggests that capital continues to flow into the ecosystem, and the drop in overall TVL is more just a result of a falling Solana price.
Solana’s healthy ecosystem suggests that the Solana price deserves to remain at levels well above its 2023 $15-30 range.
For that reason, expect dips to be bought into.
Especially when considering that most analysts remain of the conviction that crypto is in a new bull market.
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