Solana (SOL) prices have been on a downward trend since the beginning of 2024, down more than 30%.

SOL drops below the horizontal support area and faces reduced resistance in the short term.

Solana plummeted after the annual high

SOL prices have increased with increasing support roads since the beginning of 2023. Prices bounced from the support line in September (the green icon) and accelerated the rate of increase afterwards.
The uptrend has led to an annual peak of $126 in the last week of the year. The high was made just above the Fib resistance level of 0.382. However, SOL prices have dropped since then. It generates deviations above the Fib resistance level above (red circle).

Today, Solana has introduce token extension utility (extended token). They will empower developers to build tuned tokens to meet their business needs. Solana's token extension utility will include anonymous trading, swap token tuning and metadata.
Weekly SOL/USDT chart | Source: TradingView
The weekly relative strength index (RSI) tends to decrease. RSI is an alarm indicator that the traders use to assess whether the market is in overbought or oversold state and should accumulate or sell an asset production.
The index above 50 and the slope up shows that the cow side still has an advantage, while the index below 50 shows the opposite. The weekly RSI index is on a downward trend and drops below 70 this week (the red icon).

SOL price prediction: Mitigation or reversing?

Looking closely at the daily time frame, SOL is still adjusting. This is due to price action, number of waves and RSI index.
Price action shows that SOL has broken down below the horizontal region $90 and confirmed it is resistant. In addition, the daily RSI index is falling below 50, a sign of a downward trend.
Altcoin Sherpa believes that SOL prices will fall shortly. He declare:
“ I think DCA at Fib levels of 0.382 and 0.50 are all good options for long-term holdings for #Solana. Don't expect things to progress quickly but be patient ... ”.
This is consistent with the number of waves when it shows that SOL is in the fourth wave of the upward motion consisting of five waves.
Technical analysts use Elliott Wave theory to identify long-term price models and investor sentiment, Help them determine the direction of the trend.
If the number of waves is correct, SOL will complete wave four at the Fib support level to retreat 0.5 at $72, down 20% from the current price.
Daily SOL/USDT chart | Source: TradingView
Despite this price reduction prediction, regaining the $90 region and breaking up on the descending resistance line will mean that the price has bottomed out. At that time, SOL could increase by at least 40% to the 2023 high at $126.
You can see the prices of copper coin here.
Disclaimer: The article is for informational purposes only, not investment advice. Investors should learn carefully before making a decision. We are not responsible for your investment decisions.