As an experienced financial analyst, I’ve closely observed the Solana price action following the recent market-wide crash that saw SOL drop to $127.95 – its lowest level since May 2024. While the price dip was significant, Solana has displayed remarkable resilience and maintained its bullish market structure.
As an analyst, I would rephrase the sentence as follows: In the wee hours of Tuesday morning, I observed Bitcoin‘s price dipping below a significant support level, triggering a market-wide selloff that drove Solana’s price down to $127.95 – a price point last seen in early May 2024.
During European business hours on Tuesday, the cost of Solana remained approximately at $137, representing a 7.5% decline compared to the previous 24-hour period, according to CoinGecko’s data.
SOL Price Prediction: Bulls Maintain Form Despite Selling Pressure
The price of Solana’s SOL token had been moving within a symmetrical triangle pattern beforehand. This market configuration could potentially break out in either direction, but considering the previous upward trend of Solana, it’s more likely that the triangle will resolve with further gains.
In simpler terms, Solana’s price is currently sandwiched between its shorter-term and longer-term moving averages. The 50-day moving average acts as a hurdle, preventing further price increase, while the 200-day moving average offers underlying support to the current trend. Both indicators suggest a potential tug-of-war between buyers and sellers, with the latter providing more stability due to its role in upholding the uptrend.
A pause in the symmetrical triangle formation could lead to a significant surge of approximately 63% to reach a price level of $292. However, potential resistance might be encountered at the 50-day Simple Moving Average ($157), as well as at $196, $228, and $267. Conversely, should the market take a bearish turn, it may encounter solid support around $126. Additionally, notable support levels can be found at $87 and $56.
Solana Trading Volume Rallies 153% Despite Market Crash
Amidst the current market situation, the trading volume for Solana experienced a remarkable increase of 153% within a 24-hour period. This significant surge indicates heightened investor attention towards Solana, potentially foreshadowing a price rise in the near future.
The network has experienced a surge in activity based on statistical data, with the number of active addresses reaching an unprecedented peak of 41.65 million in May. As of June 18, 2024, over half of that figure has already been surpassed. (Source: The Block)
The aggregated Open Interest for Solana on Coinalyze has decreased since June 4, 2024, suggesting that investors have been withdrawing their funds from this asset. This trend aligns with the broader crypto market, which is experiencing a downturn in value. However, the Open Interest for Solana exhibits robust support near the $1.36B mark, and there’s a possibility that investors may start reinvesting in SOL once it reaches this level again.
Despite a double-digit drop in cryptocurrencies on a daily basis, and Bitcoin remaining stable during this period, the Crypto Fear and Greed Index continues to indicate “Greed.” This might seem surprising. However, it’s essential to understand that the index is influenced not only by market movements but also investor sentiment and social media buzz. Even when prices decline, strong positive sentiment or heightened interest can push the index into the “Greed” zone.
— Jason Pizzino (@jasonpizzino) June 18, 2024
Currently, Bitcoin investors continue to ponder as the Fear & Greed Index for cryptocurrencies has shown “Greed” readings for over a month, even with decreasing crypto prices.
Bottom Line
The price of Solana exhibited remarkable strength during the market-wide sell-off, bouncing back from an initial drop of 11%. It managed to preserve its uptrend despite the downturn in the broader market.
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2024-06-18 12:02