Solana Faces Bearish Headwinds, Potential 50% Plunge to $104 Looming
Despite a remarkable rebound from its recent October 10 flash crash, where it quickly reclaimed the $200 mark after touching $150, Solana (SOL) remains under significant bearish pressure. Fresh market analysis indicates that the altcoin could be on the cusp of a much larger correction, potentially seeing its price halve and fall to $104 if current bearish indicators fully play out.
Bearish Indicators Confirm Deeper Correction
Cryptocurrency analyst Kljedi Cuni suggests that the October 10 crash, triggered by external factors like Donald Trump's tariff comments on China, merely served to confirm an overarching bearish pattern for Solana. While many in the broader market might believe the worst is over, this analysis posits that the bearish trend is far from complete and is still unfolding. This makes Solana highly susceptible to further corrections. The altcoin's vulnerability is exacerbated by Bitcoin's current struggles to maintain its price levels. After an initial recovery, Bitcoin has been on a slow decline, a trend that typically drags down altcoins like Solana. If this bearish narrative intensifies, the analyst projects an initial decline for Solana to at least $170, with a more severe scenario predicting a 50% crash, bringing the SOL price down to approximately $104.
ETF Approvals Offer a Glimmer of Hope
Amidst these gloomy predictions, there is a potential catalyst that could swiftly alter Solana's trajectory: the approval of spot Solana Exchange Traded Funds (ETFs). Currently, there are eleven Solana ETF applications awaiting a decision from the Securities and Exchange Commission (SEC). Should these applications receive approval, it could unlock a substantial influx of institutional liquidity into the altcoin. Historically, the introduction of Bitcoin and Ethereum ETFs has led to significant price surges for these cryptocurrencies. A similar trend for Solana could effectively counter the existing bearish sentiment, sparking a strong price rally and pushing bears out of the market. While the Solana price currently hovers above $200, its future remains closely tied to both Bitcoin's performance and the SEC's impending decisions on these crucial ETF applications.
