Can it be corrected to $100?

The price of Solana (SOL) is showing signs of bearish growth mainly due to broad market signals and reduced investor interest.

In fact, the “Ethereum killer” will notice a correction in the coming days that could pull SOL to $100.

The impact of Bitcoin on Solana

Solana prices usually tend to follow the broader market signals, be it a meme coin frenzy or a recent correction. As Bitcoin (BTC) has crashed over the past few days, so has SOL, and this is likely to continue going forward.

This is due to the high correlation that the two cryptocurrencies share. Since the breakup in March, the correlation between the two assets has continued to strengthen, currently standing at 0.8.

Thus, Bitcoin is likely to decline further below its current trading price of $62,700, which could drag down Solana's price.

Read more: 11 best Solana meme coins to watch in 2024

Worse, the investors are not optimistic about the property. Their declining confidence is reflected in the plunge in open interest (OI). OI fell to $1.84 billion from $2.89 billion in the last four days.

This $1 billion loss from the futures market shows that investors are not just skeptical, but unwilling to make bullish or bearish bets.

SOL price forecast: down to $100

If the above bullish signals determine the price action, Solana's price may well be corrected. Trading at $132, the altcoin extends the 34% correction seen since the beginning of the month to take SOL down to $100 by 24%.

Since this is a critical support level, Solana's price may find some support at this point, preventing further losses.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

A similar strong support level is marked at $120, and if SOL is able to break out of it and participate in a recovery, the bearish note will be rejected. As a result, Solana's price may increase further to $150.