Solana Price Analysis: Solana faces a sharp price drop in October 2024, driven by geopolitical tensions and declining network activity—will it recover or fall further?
Solana (SOL) has seen a big price drop in October 2024. One of the main reasons is the rising tension between Israel and Iran. This article will look at the key reasons for Solana price analysis, how the market is reacting to these global problems, and what investors can expect in the coming weeks.
Solana Price Analysis: SOL’s Price Crash in October 2024?
October 2024 has been a difficult month for Solana, one of the best-performing cryptocurrencies. After a strong start to the year, Solana’s price has dropped by over 14% since the beginning of the month. The main reason for this drop is the rising tensions between Israel and Iran. When times are uncertain investors usually choose safer assets, which makes cryptocurrencies like Solana lose value.
How the Israel-Iran Conflict is Affecting Solana Price?
The ongoing conflict between Israel and Iran has created instability in global markets. Both countries are carrying out military attacks on each other, and people are worried that the situation could get worse and involve more countries. Because of this uncertainty, investors are choosing safer assets like the U.S. dollar or gold instead of riskier ones like cryptocurrencies.
Solana has been strongly affected by this change in investor behavior. Many traders have sold their Solana holdings, which caused the price to drop quickly in a short time. As people look for safer investments, risky assets like cryptocurrencies, including Solana Price analysis, have seen a big decline.
Declining Network Activity and Technical Concerns
While political issues are a big reason for Solana’s price drop, there are also problems inside the network that have added to this decline. Recent data shows that the number of active and new addresses in Solana price history is going down.
Solana has also faced criticism from important people in the tech world like Edward Snowden. He recently spoke out against how centralized the network is. Snowden believes that Solana’s developers have concentrated too much on making transactions faster and cheaper, which has hurt decentralization. This criticism has made investors less confident causing them to sell off more of their Solana.
Open Interest and Funding Rates
Another important reason for Solana price drop is the decrease in open interest (OI) and funding rates in the Solana futures market. Open interest shows how many active contracts there are in the options market, and it has fallen by almost 20% between September 30 and October 4. This means that traders are pulling out of their positions, which shows less interest in Solana.
Funding rates, which show how much it costs to keep long positions in the futures market, have also gone down. This drop in funding rates means that traders are not willing to pay extra to keep their positions open. This also shows that confidence in Solana chances of recovering its price soon is getting weaker.
Solana Price Analysis: A Closer Look at Recent Trends
Solana has had a rough week in the market. After falling sharply from $161.78 to a low of $133 because of tensions between Israel and Iran, the price has begun to recover. On Friday, Solana went up by 2%, trading at $139.7, while Bitcoin stayed around the important $60,000 mark. This recovery shows early signs that Solana’s price might start to rise again.
As of now, Solana is trading at $142.6, according to CoinMarketCap, reflecting growing optimism despite the recent market pullback. Will Solana maintain this momentum, or will further corrections follow? The October month will be critical.
What to Expect for Solana in October 2024
The big question for investors is: Will Solana keep dropping, or will it bounce back later in October? The future is unclear based on the current signs and what is happening in the wider market.
Solana Price Analysis indicates SOL price is currently trading in a narrow range between $120 and $160. If negative feelings about the market continue, Solana might drop to lower support levels around $120 or even $110. This would mean a nearly 15% drop from its current price, and if the situation between countries worsens Solana could go even lower.
On the other hand, if things get better and the market mood improves, Solana might try to rise above its current downward trend. If it goes above $160, it could change the negative outlook and possibly lead to a price jump toward the $180 to $200 range. However, this situation is not very likely given how the market is right now.
Conclusion: Should You Buy Solana?
Solana Price Analysis: In conclusion, Solana price drop in October 2024 is driven by a mix of geopolitical factors, declining network activity, and weak market sentiment. The ongoing conflict between Israel and Iran has created a risk-averse environment, leading to sell-offs in cryptocurrencies like Solana. In addition, internal technical concerns and criticism from key figures have further dampened investor confidence.
For those considering investing in Solana, keeping a close eye on global events and Solana’s technical performance is essential. While there may be opportunities for recovery, the short-term outlook remains bearish, and a further drop to support levels around $120 or $110 could be in the cards. Investors should exercise caution and consider diversifying their portfolios during uncertain times.
Follow Coin Mozo on X to stay informed on the latest developments in Solana price analysis and make the best investment decisions.
Also Read: SEC Appeals XRP: Whale Purchases, Spark Market Optimism—Is $3 Possible?
