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Solana (SOL) price slid to a 30-day low of $82 on Jan. 22 as crypto investors scaled back on mega-cap altcoin acquisitions, here’s what could happen next.&nbsp;
Solana emerged one of the best performing mega cap altcoins, as the crypto market rallied in the build up to the spot Bitcoin ETF verdict. But, since <a href="https://crypto.news/price/solana/" target="_blank" rel="noopener noreferrer nofollow">SOL</a> hit a 2-year peak of $126.1 on Dec. 25, the price has headed south.&nbsp;&nbsp;
On-chain data trends unveil key factors driving the current Solana decline and what price action to anticipate in the week ahead.&nbsp;
<h2 class="wp-block-heading" id="volatile-macro-conditions-behind-solana-price-downtrend">Volatile macro conditions behind Solana price downtrend&nbsp;</h2>
Since the turn of the year, Solana network has maintained strong performance in its underlying growth metrics, with network usage and daily active users on a steady rise. However, Solana price fell to $82 on Jan. 22, bringing its weekly time frame losses to the 20% mark.&nbsp;
The Solana price decline has been attributed to bearish sentiment surrounding the broader altcoin markets. TradingView’s TOTAL3 chart sums up the market capitalization of all listed crypto assets excluding Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>).&nbsp;
As depicted below while SOL price has dropped 20% between Jan 14 and Jan 22, the TOTAL3 chart also shows an 8% downtrend.&nbsp;
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/WZiRQYxEhKYwovc5PpAaDafx9tRaVhN3E-4cBZKu1eRoITVICFNwumyY2PgtuGdnlFQoSq-J8ZzrHRynZ3E-T8uChVRzcgo1gFn73t3SKopx-DSeTHpH770HpHs0stMazV7uX5JC3p_wJADxqVftlp4" alt="Solana (SOL) Price vs. TOTAL3 Crypto altcoin marketcap ">
 <figcaption class="wp-element-caption">
 Solana (SOL) Price vs. TOTAL3 Crypto altcoin marketcap | Source: <a href="https://www.tradingview.com/x/lnF9TZm7/" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>
 </figcaption>
</figure>
The TOTAL.3 chart (total crypto market cap excluding BTC &amp; ETH) shows that the global altcoin market has shrunk by $32 billion over the past week. This signals that investor confidence in the sector as a whole has been on a downtrend. As the 8th largest cryptocurrency, it’s not surprising that SOL price has been disproportionately impacted.&nbsp;
Without a significant improvement in market sentiment, SOL could experience more downside.&nbsp;
<h2 class="wp-block-heading" id="investors-are-bracing-up-for-more-downside">Investors are bracing up for more downside</h2>
In the derivatives market, Solana investors appear to be closing out their positions in anticipation of further price downswings. Santiment’s open interest data tracks the real-time value of all active derivatives contracts for a particular cryptocurrency. According to the chart below, SOL open interest is down $226 million since Jan. 17.&nbsp;
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/X2uPg1ST5fQI9ujIE3mbyIGug45IA2gMIHwu5IdVyPAo0v891O8-Q9X5J2V4hcydMKWFFVOBzXzeRSJ_fVQbA8SMJ6vwANfCMrnVO40ytrQI1vkY9J2Q23fjQXUG9yyfQbXhYSVF8pTdT9dLmoJtlSM" alt="Solana (SOL) Open Interest vs. Price">
 <figcaption class="wp-element-caption">
 Solana (SOL) Open Interest vs. Price Source: <a href="https://embed.santiment.net/chart?ps=solana&amp;pt=SOL&amp;df=2023-12-05T00%3A00%3A00.000Z&amp;emnm=1&amp;emcg=1&amp;wm=price_usd%3Btotal_open_interest&amp;wax=0%3B1&amp;wc=%2326C953%3B%23FF5B5B&amp;ws=%7B%22interval%22%3A%221d%22%7D%3B%7B%22interval%22%3A%221d%22%7D" target="_blank" rel="noopener noreferrer nofollow">Santiment&nbsp;</a>
 </figcaption>
</figure>
A closer look at the chart shows that Solana open interest slid $1.3 billion on Jan 17 to $1.06 billion at press time on Jan 22, representing a 20% price decline.&nbsp;
A decline in open interest means that more investors are exiting their positions than those bringing in new capital. This further affirms the growing disinterest among crypto investors.&nbsp;
In summary, volatility in the altcoin markets and negative trading activity among derivatives speculators are two major factors behind the ongoing Solana price downtrend.&nbsp;
<h2 class="wp-block-heading" id="solana-sol-price-forecast-bears-could-target-75">Solana (SOL) price forecast: Bears could target $75</h2>
Drawing insights from the derivatives and market data trends analyzed above, SOL price is likely to experience more downside toward the $75 area the coming days.&nbsp;
The Bollinger bands technical indicators also emphasize this bearish outlook. It shows that, with SOL price currently trading as $82, it has now wobbled below the 20-day Simple Moving Average price of $93.&nbsp;
Concisely put, this means that investors are willing to pay less for Solana price than they were 20 days ago.&nbsp;
However, the bulls could regroup around the lower-Bollinger band at $85, in attempts to trigger an early rebound. But if the bears can scale that buy-wall SOL price could slide towards $75, as predicted.&nbsp;
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/ZTh5ekN4zGyJ8OgEPeg2rCgOWJ-cCr55p9gytOCFmFzZ-7YIFRA9kTcJnu3dY7p23BZ94nAkj3L5yl6_-KRMcpi76GfBQO9yYwF_k2pdxgJOo6TZZ_EvnIRTA0Xe4DH-YuMBiXsTvArwid-Bdly_evU" alt="Solana (SOL) Price Forecast | TradingView">
 <figcaption class="wp-element-caption">
 Solana (SOL) Price Forecast | <a href="https://www.tradingview.com/x/6HqIw4g0/" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>
 </figcaption>
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On the upside, the bulls could regain control if they successfully force an upswing above $95. However, as highlighted above, the 20-day SMA at $95, could pose a major resistance, as investors holding unrealized losses over the last 20-days could begin to exit once price approach their break-even point.
Read more: <a href="https://crypto.news/solana-bulls-target-1k-as-pullix-supporters-expect-plx-to-reach-1/" rel="noopener noreferrer nofollow"> Solana bulls target $1k as Pullix supporters expect PLX to reach $1 </a>

Solana (SOL) price loses $90 support amid altcoin market downturn, what next?

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