Despite the buzz around the upcoming Solana Breakpoint 2024 conference, Solana’s price (SOL) has been struggling to keep pace with Bitcoin (BTC). This is particularly surprising to Solana bulls, who were hoping the event would drive more interest and result in a price surge.
This analysis explores the factors contributing to Solana’s underperformance and what it could mean for the token’s prospects before and after the Breakpoint event.
Solana Trails Bitcoin, Risks Following Ethereum
On July 29, the SOL/BTC pair hit a quarterly high of 0.0021, with Solana priced at $194 and Bitcoin trading above $70,000. The SOL/BTC pair measures the fraction of Bitcoin’s price represented by Solana. When this value rises, it indicates Solana is outperforming Bitcoin, while a drop suggests Bitcoin has the upper hand.
Though the pair spiked again in late August, the daily chart reveals a 13% decline from the peak, bringing the value to 0.0021. This decline highlights that, despite Bitcoin’s volatility, Solana has been underperforming BTC in recent months.
Read more: 6 Best Platforms To Buy Solana (SOL) in 2024
In a previous analysis, BeInCrypto explained how the Solana Breakpoint serves as a bullish catalyst for SOL’s price. However, recent data suggest that a repeat of such performance might not come to pass.
Prominent crypto trader Benjamin Cowen supports this outlook. According to Cowen, SOL/BTC could follow the same pattern as ETH/BTC, which has recently displayed notable weakness.
“SOL maxis are too busy laughing at ETH to recognize that SOL/BTC is just following ETH/BTC,” Cowen said.
SOL Price Prediction: Retracement to Continue
On the daily timeframe, Solana’s price dropped to $130 — below the middle band of the Bollinger Bands (BB). Two days ago, the price was above the middle point. If it had remained there, it could have increased the likelihood of a price upswing.
The BB also measures volatility, which is key to gauging if the price can swing higher or lower quickly. If the bands expand, then a notable uptrend will appear if buying pressure increases. However, if selling pressure intensifies, a notable drawdown could be the outcome.
In SOL’s case, the BB contracted, meaning SOL might not register a big move in the short term. Also, the cryptocurrency could face resistance around $150, which has recently become a pullback point.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
Failure to break above $150 could send SOL’s price downward. If this happens, the token might drop below the $125 support.
However, a potential upward breakout will play out if SOL sees increased buying pressure as the Solana Breakpoint 2024 begins. If that happens, SOL’s price might jump toward the $180 region before the event closes.
Disclaimer
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