Solana price jumped 2% during the Asian trading hours on Friday, currently trading at $139.7. This bullish turnaround reflects the market relief rally as Bitcoin attempts to hold the $60000 floor. Is the pullback sufficient to drive bottom formation, or are sellers ready to counterattack and prolong the October correction?

How Far Could Solana Price Drop in October? 

The Solana price records a sudden reversal this week, which plunged the asset from $161.78 to $133 low on Thursday— a 17.72% loss. The market correction can be attributed to geopolitical tension between Israel and Iran, which triggered a fresh pullback for most major altcoins.

Currently, the SOL price retests the 200-day EMA as resistance, which could renew the selling pressure in the market relief rally. A potential bearish crossover between the 20 and 50 days accelerates the selling pressure for downtrend continuation.

According to The Block, the new addresses on the SOL network have recently plunged to 3.36 Million addresses. This decrease indicates the slowdown in blockchain activity and user engagement, bolstering the bearish narrative.

Thus, with sustained buying, the Solana price could plunge 14% in October to hit $220 support, a level backed by the lower trendline of the flag pattern.

SOL/USDT -1d Chart

SOL Price Hints Major Reversal Within Flag

The Solana price retest to flag pattern has provided excellent support for buyers in reaccumulating this asset. Historically, each retest to this support has led to an average 60% surge in SOL.

In addition, the broader trend in Solana’s Total Value Locked (TVL) has been on the rise, surging to $5.12 billion, according to DeFiLlama. This surging TVL suggests growing investor confidence and increasing capital inflow into Solana’s DeFi ecosystem, which could further bolster the network’s value.

Moreover, the crypto exchange Upbit recently introduced the SOL/SGD trading pair, providing Singaporean traders with more accessible local pricing for Solana. This move could increase trading volume, enhance Solana’s liquidity, drive further adoption in Singapore, and strengthen global flooring.

Thus, the Solana price prediction hints at a higher potential for a bullish rebound, which could challenge the flag resistance at $180

The post How Low Solana Price Will Fall in October? appeared first on CoinGape.

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Filed under: News - @ October 4, 2024 2:21 pm