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.

ADA Alternative to Consider – Sponge V2 ($SPONGEV2)

Cardano (ADA) could deliver holders gains in the region of 10x this bull market.

That’s not bad, but many meme coin investors are aiming higher, i.e. for gains in the region of 100x.

They should look no further than Sponge V2 ($SPONGEV2).

Sponge V2 is the reincarnation of the legendary Spongebob Squarepants-themed $SPONGE token, which reached a market cap of nearly $100 million earlier in 2023 and delivered gains to its earlier investors in the region of 100x.

$SPONGE token holders will be able to stake their tokens to receive an equivalent amount of $SPONGEV2 tokens, as well as to start earning staking rewards (paid out in $SPONGEV2) with a minimum APY of 40%.

Over $5 million worth of $SPONGE tokens have already been staked and are gaining an APY of over 300%.

$SPONGE Update!

We’ve hit a new milestone with 5,390,882,888 tokens staked, valued at $5,233,589.24!

With a current APY of +300% and a price of $0.0009663 (+18% increase), $SPONGE is stronger than ever.

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— $SPONGE (@spongeoneth) January 19, 2024

$SPONGEV2’s main advantage over $SPONGE is that it will power a new play-to-earn game, the details of which are yet to be released.

But we do know that there will be a free version and paid version of the game.

Hype surrounding Sponge V2 has driven significant gains in the price of the original Sponge token in recent weeks.

$SPONGE gained another 20% on Friday to near its all-time highs just above $0.0012.

The meme coin is up an impressive near 10x since the start of November.

At a still tiny market cap of $26.5 million, the meme coin has a lot of potential upside as traders keep flocking to Sponge V2.

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Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilize affiliate links within our content and receive commission.

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