Solana’s price has seen a drop on the increasing selling pressure on exchanges. Although the biggest marketplace for buying and selling NFTs, OpenSea, has announced an integration with SOL, this has not held back its value.
However, that could change. That’s because analysts believe that Solana can recover from the fall and return to rise.
Solana, touted as one of ETH’s top competitors, has seen a correction as on-chain activity on its blockchain network plummeted and sales of NFTs on OpenSea plummeted.
The drop in NFT projects developed on Solana has negatively affected on-chain activity on the altcoin blockchain.
NFT projects are launched on Solana rather than ETH, as the SOL network is considered to be a faster, cheaper and more effective alternative to ETH, offering low-cost transaction processing on its blockchain.
As the trader Ekta Mourya pointed out, among other factors, the price of Solana suffered a drop after its correlation with BTC.
“Increasing selling pressure on Solana on exchanges has led to a reversal of the downtrend on the altcoin. Traders believe that once the price of Solana recovers from a dip below its 200-day moving average, it could bounce back,” he said.
Some FXStreet analysts agree with Mouyra. They noted that the altcoin is outside the oversold area. Furthermore, they argued that the Solana price witnessed a trend reversal following a display of bullish pressure in March 2022. This implies that buyers are not so confident.
But analysts predicted that Solana could reclaim $120 and enter a bullish rally, doubling its price as it enters the buy zone.
Therefore, they predict a rally of up to 200% for Solana as the altcoin has traded above the ascending trend line, which is considered key to its rally.