After a rollercoaster-packed weekend, SOL price attempted a recovery from support at $120 but failed to make headway above the $150 level on Monday. This weekend, investors suffered a major setback with liquidations blowing leveraged crypto fortunes into thin air, bearing the biggest brunt of the war in West Asia. Geopolitical tensions rocked the global
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After a rollercoaster-packed weekend, SOL price attempted a recovery from support at $120 but failed to make headway above the $150 level on Monday. This weekend, investors suffered a major setback with liquidations blowing leveraged crypto fortunes into thin air, bearing the biggest brunt of the war in West Asia. Geopolitical tensions rocked the global financial industry on Friday, causing a major sell-off in Bitcoin price and major altcoins like Ethereum, Solana, and XRP.
Despite the downturn in the trend ahead of the 2024 Bitcoin halving, prices in the crypto market showed extreme resilience on Monday amid modest gains. As Solana climbed 4.4% to $142 at the time of writing, the cumulative total market cap had increased y 2.1% to approximately $2.5 trillion, as observed on CoinGecko.
SOL Price Forecast: What’s Next As Solana Dumps On Monday
The bullish outlook in the crypto market is quickly turning grim during US business hours on Monday. After topping $150 earlier today, SOL is extending a four-hour candle to $142.
Resistance at $150 reinforced by the 0.618 Fibonacci ratio threatens another sell-off back to $120, especially with the Relative Strength Index (RSI) reversing the trend downward at 41.
Not that another daily close under the RSI trendline support/resistance may imply heightened selling pressure over the coming sessions and even days.
The next couple of days will play a huge role in determining the direction SOL price will take. Such that, if the 0.786% Fibonacci ratio around $138 is respected as support, a recovery will ensue increasing the chances of Solana rallying above $200 again in 2024. Other support areas to watch include the ascending green trendline and last weekend’s major buyer congestion at $120.
Solana’s DeFi TVL Tanks Pulling Prices Lower
Holders of SOL tokens quickly reacted to the sudden pullback in the crypto market by recalling deposits made in smart contracts protocols within the Solana ecosystem.
Based on data from Defi Llama, the total value locked (TVL) which shows the cumulative value of all assets held in the Solana DeFi sector, has fallen to $3.71 billion from a yearly high of approximately $4.89 billion on March 30.
This persistent drop over two weeks hints at the growing negative sentiment regarding the future of Solana.
When the DeFi TVL is increasing consistently, it means that holders have a long-term positive view of the token SOL and, therefore, are willing to ignore the unrealized profits to take part in securing the network for staking rewards while aiming for higher price levels.
As the TVL drops, so does the future outlook of the protocol and the associated value. It might be wise to watch out for rebounds in the TVL as a sign of incoming value growth in the short term.
Whether SOL price can debut at the $260 all-time high in 2024 will depend on investor interest in the token and the general market outlook after Bitcoin halving later this week.
Investors will likely begin to FOMO with a second break above $200. This move will validate the bullish strength in Solana and the ability for the price to hit a new record high in the year.
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