Solana (SOL) has experienced a severe decline, dropping to around $60 this month—its lowest level since late 2023. Despite the bearish market, some analysts point to technical indicators like an oversold RSI and a TD Sequential buy signal as potential signs for a recovery, with predictions of a rise toward $77. However, other market participants warn of further downside risks, citing increased exchange deposits and outflows from institutional investment products.
Solana’s native token, SOL, has faced a devastating few weeks, hitting a low of approximately $60 earlier this month. The asset currently trades near $63, representing a 33% monthly drop and a market capitalization below $40 billion.
Analyst Ali Martinez revealed the TD Sequential indicator has flashed a buy signal on SOL. He suggested this could lead to a price increase toward $77.
Another technical signal comes from Solana’s daily Relative Strength Index, which recently dipped to approximately 15. This is its lowest reading ever and indicates the asset is deeply oversold.
X user Henry supported the optimistic outlook, noting that SOL looks “absolutely bullish” at the moment. They predicted a W-shaped recovery beyond $88 if bulls can reclaim the $79.9 level.
Despite these signals, some expect more pain. X user cyclop envisioned a short-term plunge to the $30-$40 range. However, they remain optimistic long-term, forecasting a rise to $300 within the next one to two years.
Market data reveals increased selling pressure, as many investors have transferred SOL holdings to centralized exchanges. This net inflow to exchanges intensifies fears of an additional correction.
Furthermore, institutional interest appears to be waning, with recent outflows from spot SOL ETFs exceeding inflows. This requires issuers like Bitwise, Fidelity, and Grayscale to sell real SOL to back their shares.
