Solana (SOL) has faced a significant correction over the last few days. The asset follows the market downtrend, following Bitcoin’s (BTC) dip to sub-$94,000 levels. SOL’s price has fallen 3.5% in the daily charts, 7.9% in the weekly charts, and 12.2% over the previous month. Despite the dip, SOL has maintained some gains in the 14-day and yearly charts, rallying 0.8% and 88.2%, respectively.
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Why Is Solana Falling?
SOL’s latest correction follows the general bearish market trend. The cryptocurrency market has faced two substantial corrections over the last month. In December 2024, the market dipped following the rise in US inflation figures to 2.7%. The Federal Reserve took a hawkish stance to combat rising CPI numbers. The central bank announced only two interest rate cuts instead of three.
Solana’s (SOL) latest price correction comes after better-than-expected jobs data in the US. The development has pushed any hopes for an early interest rate cut this year. Both developments may have spooked investors away from risky assets.
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When Will The Asset Reclaim Its $263 Peak?
Solana (SOL) hit an all-time high of $263.21 on Nov. 23, 2024. The asset has since fallen by 27.5%. After the recent market dip, SOL has dipped below the $200 mark. Despite the correction, SOL has displayed incredible performance over the last few years. The asset fell to below $10 in November 2022 after the collapse of FTX. SOL has made quite a recovery since its 2022 lows.
According to Changelly, SOL could reclaim its $263 peak in April 2026. The platform anticipates the asset to trade at a potential maximum price of $264.56 in April 2026.
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There is a possibility that SOL will hit $263 in 2025. If the crypto market turns around after President-elect Donald Trump’s inauguration on Jan. 20, 2025, we may witness another market-wide rally.