Solana price is still trending inside a consolidation zone, bouncing between $130 and $163. This reflects the broader crypto market, which has been trapped between $2.25T and $1.867T for the past 67 days. Meanwhile, an analyst has suggested that BTC price could drop to $48,000 before pumping, and SOL investors wonder how low it could go if such a scenario were to occur.
How Will BTC Price Hitting $48,000 Impact Solana?
Crypto analyst Axel shared his BTC prediction on X (formerly Twitter) that the price of BTC will drop to $48,000. His analysis is based on the average purchase price of BTC, determined by the 4-year and 365-day simple moving averages (SMA).
Bitcoin has been a major influencer of overall crypto prices, and the current consolidation phase and potential decline to $48,000 poses significant implications for altcoins, including Solana (SOL).
SOL is a standout performer in the crypto space, maintaining a bullish price action despite erratic BTC price movements. Nevertheless, it is not immune to market fluctuations like many other altcoins. A potential drop in Bitcoin price to $48,000 would cause SOL price to experience downward pressure.
Solana Price If BTC Price Drops To $48,000
Two previous cases to draw from are the August 5 and September 6 Bitcoin crashes that impacted the whole market. While Bitcoin price dropped by 30% and 12% on August 5 and September 6, respectively, SOL recorded 43% and 12% during those crash events.
Comparing these declines, we find that for every 1% drop in BTC price, Solana dropped 1.43% on August 5, and on September 6, the decrease in price for both assets was negligibly close to 1:1, bringing the average drop ratio from the two events for these crypto assets to 1:1.216.
This means that for every 1% drop in Bitcoin price, SOL would be expected to lose 1.216%.
A drop from the current BTC price of $62,070 to $48,000 constitutes a 22.66% decline. Fitting this into the current working ratio means SOL price would drop 27.56%.
Solana price analysis chart
Solana price prediction shows the asset would drop to $103.29 from its current price of $142.59, which puts it right at the 0.618 Fibonacci retracement level, ripe for rebound to previous all-time highs and beyond.
Despite the calculations done, the extend of the drop would also depend on ther factors, including market sentiment, investor behavior and broader economic conditions. For instance, SOL was much more immune to the September 6 drop, compared to the August 5 drop.
The post How Low Could Solana Go If BTC Price Hits $48K? appeared first on CoinGape.