Solana (SOL) Price Analysis and Prediction, December 11: Is SOL Heading to $300 or Crashing to $140? Here’s What to Expect!

Solana is facing tough times as selling pressure increases. Over the past day, its price has dropped sharply, showing weakness in the short term. However, the overall long-term outlook still seems positive.

Solana started recovering in September, bouncing back from $120 and reaching higher highs. It appeared strong after breaking key levels last month but started losing momentum recently. Since testing $264 three weeks ago, the price has been corrected. This correction deepened yesterday with heavier selling volumes.

The price briefly recovered after holding the $200 support level, offering a bit of relief. But sellers are active again and aiming to push it lower. If selling pressure grows, Solana could fall into the $180 range before finding support. A bounce from this level might restart a bigger upward move. On the other hand, breaking below the trendline could send the price back to $140.

Right now, Solana’s price is struggling near $210, where sellers are focused. If they win, the next supports are around $194 and $183. If the price regains strength and breaks $221, it could climb toward $245 and possibly retest $264. A strong recovery might even push it to $280 or $300.

Falling Funding Rate Expose Traders’ Short Position 

Market activity also shows declining confidence. Solana’s funding rate has dropped sharply in the past two days, indicating that traders are leaning more toward short positions. This shift shows doubts about Solana’s ability to hold its current price levels. Even so, the funding rate is still positive which suggests there is still some optimism, though it’s fading fast. The decline in funding rates highlights a shift in sentiment, with traders hedging against further price drops. This growing caution reflects uncertainty in Solana’s near-term future.

Despite the bearish short-term signals, Solana’s long-term potential remains intact. The market sentiment shows mixed feelings, with some traders expecting further dips while others anticipate a bounce back. For Solana to regain strength, reclaiming $221 as support is essential. Breaking this level could reignite bullish momentum, pushing the price closer to previous highs.

Market Observations and Present Snapshot 

If Solana continues its downward correction, buyers might step in near $200 or $180. These levels are critical for reversing the trend and attracting fresh buying interest. On the flip side, failing to hold these supports could cause a deeper fall, raising concerns about broader market weakness.

The current price sits at $223.80, with slight pressure to the downside. Predictions suggest a potential recovery to $241.98 by January 2025, which would mark a 10.34% increase. Over the next year, Solana is expected to trade within the $218 to $241 range, offering moderate returns for patient investors.

As it stands, Solana faces significant challenges in the short term but retains a bullish outlook for the long haul. For those considering entering the market, this might be a good time to keep an eye on support levels or consider gradual accumulation during dips. The next few days will be crucial in determining Solana’s path, so staying updated on market movements is key.

FAQs:

1. Why is Solana’s price dropping right now?

Solana’s price is dropping due to increased selling pressure and traders shifting to short positions, reflecting a bearish short-term sentiment.

2. What support levels should Solana investors watch?

Key support levels to watch are $200, $194, and $183. If these fail, Solana might drop further, possibly to $140.

3. Is Solana still a good long-term investment?

Yes, despite short-term challenges, Solana’s long-term trend remains bullish, with a potential recovery to $241.98 and beyond in 2024.