Token

Franklin

Solana

Jito

<p class="is-style-lead">After a bullish run between September and December 2023, the native token of the Solana network, <a href="https://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>, has been declining steadily over the last three weeks.</p> 
<p>Ranked fifth in market capitalization, Solana initially showed remarkable performance, surging by 530% since October 2023 and gaining 106% in December alone.&nbsp;</p> 
<p>Many chalked down the December rally to the fear of missing out, or “FOMO,” surrounding the Solana SPL token airdrops, with tokens like Jito (JTO), <a href="https://crypto.news/price/bonk/" target="_blank" rel="noreferrer noopener">BONK</a>, and Dogwifhat (WIF) contributing.</p> 
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<p>However, the tide shifted since the new year began, with BONK experiencing a 15% <a href="https://crypto.news/coinmarketcap-helium-overtakes-bonk-as-top-gainer/" target="_blank" rel="noreferrer noopener">correction</a> and JTO <a href="https://crypto.news/solana-meme-tokens-collapse-after-december-pump/" target="_blank" rel="noreferrer noopener">declining</a> by 19% between Jan. 17 and Jan. 18. According to analysts, the correction was partly due to excessive optimism regarding airdrop expectations.&nbsp;</p> 
<p>Some launches took longer than anticipated, and the boost provided to decentralized applications (dapps) was often short-lived.</p> 
<p>Apart from a Jan. 2 spike that caused SOL’s price to surpass $116, the coin has not changed hands for more than $107 in recent times.</p> 
<p>On Jan. 19, SOL faced a 7% decline, reaching a low of $95.05 per <a href="https://www.coingecko.com/en/coins/solana" target="_blank" rel="noreferrer noopener">data</a> from CoinGecko.&nbsp;</p> 
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 <img loading="lazy" decoding="async" width="1600" height="1168" src="https://crypto.news/app/uploads/2024/01/image-4.jpeg" alt="Navigating Solana's price action: from FOMO-fueled rally to recent corrections - 21" class="wp-image-14240769">
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  Solana price chart. Source: CoinGecko
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<p>It marked a continuation of the persistent rejection from the $100 level analysts have observed over the past fortnight.</p> 
<p> You might also like: <a href="https://crypto.news/franklin-templeton-eyes-solana-network-a-prelude-to-a-solana-etf/"> Franklin Templeton eyes Solana network: A prelude to a Solana ETF? </a> </p> 
<h2 class="wp-block-heading" id="strong-token-price-down-tvl-up-strong"><strong>Token price down, TVL up</strong></h2> 
<p>As of the latest data, SOL is priced at $92.14, reflecting a 2.1% decrease in the last 24 hours. Its circulating supply is 432.9 million SOL, contributing to a 24-hour trading volume of $1.418 billion.</p> 
<p>Per data from <a href="https://defillama.com/chain/Solana?currency=SOL" target="_blank" rel="noreferrer noopener">DefiLlama</a>, the total value locked (TVL) in SOL tokens peaked at 15.4 million on Dec. 19, 2023, indicating a 60% growth compared to the previous month. </p> 
<p>Solana has also demonstrated growth in network activity, particularly in transactions and volumes. In fact, despite an 8.5% decline in transactions and active dapps users in the last seven days, Solana’s dapps <a href="https://dappradar.com/rankings/protocol/solana" target="_blank" rel="noreferrer noopener">volume</a> reached $594 million, leading with 72.3 million transactions.</p> 
<p>The coin’s all-time high (ATH) of $258.9 serves as a reference point for its historical performance. While the current price is notably lower, the positive sentiment surrounding the project is evident, with a Fear-Greed Index of 64, indicating a prevailing sense of greed among investors.</p> 
<h2 class="wp-block-heading" id="strong-mixed-technical-indicators-strong"><strong>Mixed technical indicators</strong></h2> 
<p>However, <a href="https://www.moneycontrol.com/crypto-market/technical-analysis/solana/solinr/daily" target="_blank" rel="noreferrer noopener">technical analysis</a> paints a mixed picture. While SOL remains above its 50-day and 200-day exponential moving averages, indicating a golden crossover and a bullish sentiment of 85%, recent price action suggests a potential reversal.</p> 
<p>Furthermore, SOL’s relative strength index (RSI) at 43.74 suggests a bearish market, while the moving average convergence and divergence (MACD), at 55.59, indicates an upward trend.</p> 
<p>Analysts had initially anticipated a continued bullish run, supported by optimistic price predictions for 2024 ranging between $250 to $300.&nbsp;</p> 
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   <p lang="en" dir="ltr">INSANE <a href="https://twitter.com/hashtag/SOLANA?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#SOLANA</a> PRICE PREDICTION FOR 2025! <a href="https://twitter.com/solana?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@Solana</a> <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$SOL</a> <a href="https://twitter.com/hashtag/SolanaCommunity?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#SolanaCommunity</a> <a href="https://twitter.com/hashtag/SolanaNFT?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#SolanaNFT</a> <a href="https://t.co/nBXchIBPRN" target="_blank">pic.twitter.com/nBXchIBPRN</a></p>— JAKE (@JakeGagain) <a href="https://twitter.com/JakeGagain/status/1744879476943757369?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">January 10, 2024</a>
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<p>However, the general price dip witnessed since the beginning of the year and the increased selling pressure suggest a shift in control towards the bears.</p> 
<p>Solana’s recent price action also reflects a tug-of-war between bulls and bears. The rejection at resistance levels and the overall market sentiment indicate a cautious stance among investors, with some, like Toni Ghinea foreseeing a potential drop to $60 by late 2024.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$SOL</a><br><br>Top is in.<br><br>Will trade under $60 in 2024. <a href="https://t.co/AHH7I8KZug" target="_blank">pic.twitter.com/AHH7I8KZug</a></p>— Toni Ghinea (@ToniGhinea) <a href="https://twitter.com/ToniGhinea/status/1748350533188862190?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">January 19, 2024</a>
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<p> If Ghinea’s prediction plays out, then it is expected to shift sentiment, leading to the SOL market experiencing increased bearish pressure.</p> 
<p> Read more: <a href="https://crypto.news/solana-upswing-still-expected-according-to-analyst/"> Solana upswing still expected, according to analyst </a> </p>

Navigating Solana’s price action: from FOMO-fueled rally to recent corrections

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