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| Illustration Photo of Crypto Development |
KOMPUTER JADUL-, Crypto, Solana (SOL) has experienced a very drastic decline in the past month, dropping more than 35 percent to US$ 127.63, its lowest level in the past few months. This fall has sparked concerns in the crypto market, especially due to the weakening technical indicators and reduced activity on the Solana network.
Now, all investors are wondering whether SOL can still rise, or will it fall even deeper?
AI Prediction for Solana Price at the End of March
Reporting from a finbold.com news, several artificial intelligence (AI) models tried to project the price movement of Solana until March 31, 2025. Based on technical analysis and market trends, AI estimates the average price of SOL at US$ 133.83, up 7.59 from the current level.
The most optimistic prediction comes from Claude 3.5 Sonnet, who estimates that SOL could rise 13.76 percent to reach US$ 141.50 by the end of the month.
Meanwhile, the Gemini 1.5 Flash 002 and GPT-4.o models provide more conservative estimates, with a price target of US$130 or an increase of 4.51 percent. This shows that despite the potential for upside, market sentiment is still cautious, likely due to the lack of strong catalysts to drive a major rally,
Solana Fundamentals Decline
Despite predictions for a price recovery, the fundamentals of the Solana network have actually declined. Solana's weekly revenue plunged by 93 percent, dropping from US$55 million in January to just US$4 million last week.
In addition, Solana's decentralized finance (DeFi) ecosystem has also been affected. The total value locked (TVL) in Solana DeFi fell nearly 50 percent from US$12 billion in January 2025 to US$6.4 billion as of March 11, according to data from DeFiLlama.
This decline indicates that fewer users and investors are participating in the Solana network, which could be a negative signal for the price in the long term. Derivatives Market Gives Hope
On the other hand, data from the derivatives market provides a glimmer of optimism. SOL trading volume increased 8.49 percent to US$ 12.95 billion, indicating increased market activity. In addition, open interest (futures contracts) rose 3.36 percent to 3.74 billion.
Speculation on SOL also increased, as seen from open interest increasing 3.49 percent to US$ 8.62 percent. In addition, the long/short ratio on Binance and OKEx exceeded 3.7, indicating more traders are betting on a price increase.
Interestingly, short position liquidations were greater than long position liquidations in various time periods. This indicates the possibility of a Short Squeeze, where a sudden price increase can force more traders to close their short positions, which in turn could push the price up even further.
If this positive momentum continues, it is possible that SOL could target a price range of $350 to $400 in the medium term, as it did during the 2021 surge.
However, to reach that level, Solana needs to improve its fundamentals. Increased network activity, DeFi growth, and the influx of new investors will be the deciding factors as to whether SOL can truly recover or just experience a short-term surge before falling again.
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