The Solana and Bitcoin (BTC) connection has driven SOL to a price below $130, but there is more to the story, with the Bitcoin Having Event just 500 blocks away. Indeed, the Halving is slated to take place in just four days, with the closing of the week seeing it officially take place.
For much of last week, Solana’s connection to Bitcoin has affected its price. As BTC has dropped in value, so too has SOL. That has led to a more than 34% drop in the last 30 days, according to CoinMarketCap. Yet, with many expecting the upcoming supply cut to impact prices, Solana could be one of the most affected.
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Solana-Bitcoin Connection Could Mean a Turnaround Soon
For the last month, Solana has seen some highs and some lows. Its network had been the main player of March’s Meme Coin Mania event. Many Solana-based meme coins had surged in price, including Dogwifhat (WIF) and Book of Meme (BOME). Yet, network congestion that led to a 75% transaction failure rate hindered its success.
Moreover, Solana (SOL) has not performed as well as many had hoped. A large reason is that Solana correlated with Bitcoin, which has now driven the price of the asset below the $130 mark. In the last 24 hours alone, the value has dropped almost 11%.
Also Read: Solana (SOL) Reverses 30-Day Fall; Is $200 Post-Halving In Play?
That has only multiplied with investors losing confidence in the asset. According to Coinglass data, the Open Interest in the asset dropped from $2.89 over the last several days to $1.84 billion. Yet, the upcoming Bitcoin Halvign event has many optimistic that this could change.
According to BeInCrypto forecasts, the asset could see a continued correction. Specifically, its current 34% downtrend would be combined with a 24% decrease to drop SOL below the $100 mark. In that scenario, the expectation is that the asset would find support, lessening any further decline in value.
Alternatively, support at $120 could set a different course. Specifically, bearish projections could be countered with a price rally to $150 in the cards. With the Bitcoin halving nearing, it may see that support allows SOL to mirror a rally that BTC observes.