Solana (SOL) has plunged over 35% in the past month, falling to $127.63 at press time, its lowest level in months. The sharp decline has sparked broader market panic, with weak technical indicators and fading network activity compounding concerns.
As Solana struggles to regain momentum, investors are left questioning whether the altcoin can stage a recovery or if further downside is on the cards.
Finbold AI predicts Solana price target for March 31
As Solana struggles to break free from its current range, Finbold’s AI-powered prediction tool has provided an updated outlook for its price trajectory leading up to March 31, 2025. Factoring in technical indicators and market trends, the model forecasts an average SOL price of $133.83. If met, this forecast would equate to a 7.59% increase from current levels.
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The most bullish price target comes from Claude 3.5 Sonnet, which predicts a 13.76% rally, placing SOL at $141.50 by the end of the month.
On the other hand, Gemini 1.5 Flash 002 and GPT-4o present a more conservative scenario, both expecting SOL to reach $130.00, representing a 4.51% increase. Their forecasts suggest a tempered bullish sentiment, likely influenced by broader market conditions or a lack of bullish catalysts.
Solana broader market outlook
Despite AI-driven optimism for SOL’s price, Solana’s network fundamentals have taken a major hit, with weekly revenue collapsing from $55 million in January to just $4 million last week—marking a 93% drop.
Meanwhile, the total value locked (TVL) in Solana’s DeFi ecosystem has plunged nearly 50%, dropping from $12 billion in January to around $6.4 billion on March 11 as per the data from DefiLlama.
However, despite the concerning decline in network revenue and DeFi activity, Solana’s derivatives market data signals renewed bullish momentum, suggesting that traders are positioning for a potential price recovery.
Trading volume has surged by 8.49% to $12.95 billion, a sign of increased market participation, while open interest has climbed 3.36% to $3.74 billion, indicating fresh capital inflows into SOL derivatives.
Moreover, options open interest is up 3.49% to $8.62 million, signaling greater speculative activity and potential hedging for an anticipated price move.
Further supporting the bullish case, long/short ratios on Binance and OKX exceed 3.7, showing that traders are overwhelmingly positioned on the long side. Meanwhile, short liquidations have been outpacing long liquidations in multiple timeframes, particularly in the one-hour, four-hour, and 12-hour periods, which suggests that a short squeeze could propel SOL’s price higher.
If momentum sustains, SOL could break out toward $350 to $400 in the mid-term, with even greater upside possible in the long run, mirroring its historic 2021 rally.
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