Solana (SOL) price has slipped over 12% in the past seven days to trade at about $127 at press time. This large-cap altcoin, with a fully diluted valuation of about $72 billion, was recently rejected at a crucial supply range around $147, thus increasing the odds of further selloff.
Is Solana Price on the Cusp of 15% Drop?
In the weekly timeframe, the SOL/USD pair has broken below a multi-year rising logarithmic support trend. The recent rejection around $147 confirmed a more bearish outlook in the midterm.
Since early 2024, SOL price has been consolidating in a range between $251 and $103. Following the recent macro bearish confirmation, SOL price is on the cusp of a 15% drop towards the lower border of its horizontal consolidation.
What’s the Bigger Picture?
Solana price has followed Bitcoin (BTC) in its macro outlook. With the flagship coin trapped in a midterm correction, the SOL/USD pair is well positioned to drop in tandem.
However, Bitcoin price is expected to rebound towards a new all-time high as traders anticipate a gold reversal in the near term. As such, SOL price is well positioned to rebound from its multi-year support level around $100 towards the ATH in the near term.
The bullish outlook for SOL is backed by the network’s robust fundamentals. For instance, the approval of several spot Solana ETFs in the United States has created a clear avenue for institutional investors to get exposure to SOL.
Additionally, the ongoing implementation of the Genius Act has helped Solana’s stablecoin market cap surge to over $13 billion. Meanwhile, the imminent passage of the Clarity Act will be a major bullish trigger for SOL in the subsequent months.