Solana

FOMO

Jito

Rise

In a twist of fate, SOL, the native token of Solana, navigates through a period of volatility after a robust bullish run that spanned from September to December 2023. The once-surging token has encountered a steady decline over the past three weeks, leaving investors on the edge. 
<h2 id="strong-solana-meteoric-rise-falters-amid-corrections-strong">Solana Meteoric Rise Falters Amid Corrections</h2> 
Initially hailed for its remarkable performance, SOL skyrocketed by an astonishing 500% since October 2023, with December alone contributing a remarkable 105% gain. The surge was largely attributed to the fear of missing out (FOMO) surrounding Solana’s SPL token airdrops, where tokens such as Jito (JTO), BONK, and Dogwifhat (WIF) played a significant role. 
However, the currents have turned since the dawn of the new year. Recent weeks have witnessed a correction in SOL’s value, shaking investor confidence. Excessive optimism regarding airdrop expectations and delayed launches have contributed to this correction, as the boost to decentralized applications (dapps) proved short-lived. 
The decline in SOL’s value has been evident, with the coin rarely surpassing the $107 mark in recent times. On January 19th, SOL faced a 9% decline, plunging to a low of $95. Analysts have observed a consistent rejection from the $100 level, further fueling investor caution. 
At the time of writing, SOL was trading at $89.72, <a href="https://www.coingecko.com/" target="_blank" rel="noopener nofollow">down 2.4% and 6.7%</a>, respectively, in the last 24 hours and seven days, data from Coingecko shows. 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-570649" src="https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270" alt="" width="1024" height="270" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270?w=1298 1298w, https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/a_19b4fa.png?resize=1024%2C270?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
<h2 id="strong-sol-faces-price-dip-amidst-growth-strong">SOL Faces Price Dip Amidst Growth</h2> 
While SOL’s token price experiences a downward trend, there are positive signs of growth in other aspects. <a href="https://defillama.com/chain/Solana?currency=SOL" target="_blank" rel="noopener nofollow">Solana’s total value locked</a> (TVL) in SOL tokens reached an all-time high of 15.4 million on December 19th, 2023, indicating a substantial 60% growth compared to the previous month. 
Furthermore, Solana has demonstrated an increase in network activity, particularly in transactions and volumes. Despite a slight decline in transactions and active dapp users over the past week, Solana’s dapps volume reached an impressive $594 million, with a staggering 72.3 million transactions. 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-570646" src="https://www.newsbtc.com/wp-content/uploads/2024/01/a_36da0e.png?resize=675%2C362" alt="" width="675" height="362" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/a_36da0e.png?resize=675%2C362?w=675 675w, https://www.newsbtc.com/wp-content/uploads/2024/01/a_36da0e.png?resize=675%2C362?w=460 460w" sizes="(max-width: 675px) 100vw, 675px" data-recalc-dims="1"> 
<a href="https://www.moneycontrol.com/crypto-market/technical-analysis/solana/solinr/daily" target="_blank" rel="noopener nofollow">Technical analysis paints a mixed picture</a> for SOL’s future. While the token remains above its 50-day and 200-day exponential moving averages, suggesting a bullish sentiment, recent price action raises concerns of a potential reversal. 
SOL’s relative strength index (RSI), on the other hand, sits at 43.70, indicating a bearish market, while the moving average convergence and divergence (MACD) stands at 55.50, pointing towards an upward trend. 
Initially, analysts were optimistic, predicting a continued bullish run for SOL in 2024, with price projections ranging from $250 to $300. However, the general price dip observed since the beginning of the year, coupled with increased selling pressure, has shifted control towards the bears. 
<blockquote class="twitter-tweet"> 
 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$SOL</a> 
 Top is in. 
 Will trade under $60 in 2024. <a href="https://www.newsbtc.com/avalanche/buy-sell-trade-tokens-avalanche/" target="_blank" rel="noopener ">pic.twitter.com/AHH7I8KZug</a> 
 — Toni Ghinea (@ToniGhinea) <a href="https://twitter.com/ToniGhinea/status/1748350533188862190?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">January 19, 2024</a>
</blockquote> 
A struggle between bulls and bears has ensnared investors. A lot of people are just going to sit tight and see what happens because of the resistance levels and the cautious market mentality. 
It is worth mentioning that expert Toni Ghinea has predicted a possible decline to $60 by the end of 2024, which might intensify the negative sentiment around the SOL market. 
Featured image from Shutterstock

From Highs To Lows: Solana’s Price Journey – Can It Recover From FOMO Fumble?

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