Solana Falls 57% Since January Highs: Should You Buy The Dip?

Solana (SOL) has faced a significant price correction over the last month-and-a-half. The asset hit an all-time high of $293.31 earlier this year on Jan. 19. Since its January highs, SOL’s price has dipped by 57.5%.

Solana Continues To Suffer While Market Recovers

The cryptocurrency market seems to be recovering from its recent correction. Bitcoin (BTC) has reclaimed the $83,000 price level. The global crypto market cap has climbed to $2.8 trillion. Despite the slight market recovery, SOL continues to dip. The asset is down 0.1% in the daily charts, 16.2% in the weekly charts, 11.8% in the 14-day charts, 39.2% in the monthly charts, and 17.5% since March 2024.

The market recovery could be due to positive inflation news in the US. Inflation has risen by 0.8% but has slowed in growth. The development may have led to a rise in investor sentiment. SOL, on the other hand, has not seen the same growth as other assets.

Should You Buy The Dip?

Solana (SOL) was among the best-performing cryptocurrencies of the last few months. The asset’s performance has taken a significant toll over the last few weeks. SOL’s price took a hit after the Libra coin debacle. The low prices could prove to be a good entry point for new investors.

According to CoinCodex, SOL will continue its downward trajectory over the next month. The platform anticipates the asset to dip to $119.71 on Apr. 18. SOL’s price will fall by 3.75% if it slides to $119.71.

Although buying the dip is a practice many recommend, it may not pay off for SOL, if CoinCodex’s prediction comes true. There is also a possibility that SOL’s price will gain traction over the coming weeks.