Solana price has been in a strong bearish trend in the past few weeks as investors wait for the upcoming Ethereum merge and the latest non-farm payrolls (NFP) data. SOL token is trading at $31, which is about 87% below the highest level in 2021. The token’s market cap has dropped to about $11 billion, making it the 9th biggest cryptocurrency in the world.
Ethereum merge and Solana upgrade
Solana price has tracked the performance of other cryptocurrencies. Its price rose to a high of $50 in August as Ethereum surged to $2,000. The price then retreated as stocks and other digital coins pulled back. Historically, cryptocurrencies tend to have a close correlation with each other. It also declined in line with the performance of the stock market after the Federal Reserve continued its hawkish tone.
Solana price also retreated as the developers unveiled more details about its upcoming upgrade. The details showed that Solana’s transaction per second (tps) jumped to 13,000. This is a big step considering that the current tps stands at between 2,500 and 4,000. Therefore, it will likely continue seeing more applications in its ecosystem.
The next key catalyst for Solana price will be the upcoming Ethereum merge that will see the network transition from a proof-of-work to a proof-of-stake. This upgrade will not affect Solana directly but its price will react to it because of the close correlation that exists in the crypto market. In the long run, there is a likelihood that many developers will move from Solana to Ethereum.
Solana price prediction
SOL price has been in a strong bearish trend in the past few weeks. This sell-off happened after the coin formed a triple-top pattern in August. Historically, a triple-top pattern is usually a bearish sign. It then managed to move below the important support at $34.60, which was the neckline of this pattern. Also, it has dropped below the 25-day and 50-day moving averages.
Therefore, Solana price will likely continue falling as sellers target the next key support at $25. This will likely happen in September. A move above the resistance at $34.6 will invalidate the bearish view.
