As a seasoned researcher with a keen eye for market trends and a deep understanding of the cryptocurrency landscape, I find myself intrigued by the Solana price dynamics. The prolonged downfall is certainly noteworthy, but as we all know in this volatile market, even the most resilient coins can take a hit.
On Friday, the decline in Solana’s price continued during trading, resulting in a 4% drop and a closing price of $136.5. The altcoin market has seen ongoing selling pressure as Bitcoin struggles to maintain prices above $60,000. Is there a possibility that sellers will tighten their grip in September?
Solana Price to Retest Key Support Amid Launch of Liquid Staking Tokens
In simple terms, there’s a surge of activity in locking up (staking) and re-locking up (re-staking) Solana tokens across the network, with prominent platforms introducing new tokens for staking (liquid staking tokens) to meet this growing interest. For instance, ByBit, a cryptocurrency exchange, has announced plans to release bbSOL, a type of liquid staking token. This development enables users to deposit their SOL tokens on Bybit’s Web3 platform and get bbSOL tokens as a reward instead.
Despite the announcement, the Solana price plunged below the 200-day Exponential moving average (EMA) on Thursday.
Staking liquid allows users to gain token incentives as they assist platforms in preserving liquidity, thereby establishing a win-win situation. Users can utilize their earned reward tokens within other DeFi services without the need for undoing their staking process.
Beyond Bybit’s move, notable cryptocurrency platforms such as Binance and Bitget are probably going to introduce their own staking tokens, namely BGSOL and BNSOL. The introduction of these tokens is expected to encourage more participation in the Solana Network’s staking process, thereby enhancing its security and improving the overall well-being of its ecosystem.
Instead, the evolution of this situation might influence Solana’s price subtly and consistently over time, as opposed to causing a sudden change.
SOL Price Hints Immenint Rebound with Flag Formation
Over the past six days, the value of Solana has dropped significantly, going from $162 down to $136. This represents a decrease of approximately 15.8%. The recent downturn suggests that the sideways movement observed in its flag pattern on the daily chart is continuing, hinting at a bearish trend.
Generally, when a pattern emerges, it often causes a short-term convergence of two trendlines to help the prevailing trend regain its bullish strength. If this pattern continues as expected, the price of Solana (SOL) could surge by approximately 30% and reach around $180, just prior to a significant breakout above the upper trendline.
On the other hand, the Relative Strength Index dropped by 40%, suggesting that sellers have more power in the present market scenario.
Should the market downtrend continue, the forecast for Solana suggests a potential drop of approximately 10%, returning it to the significant support level of around $121 that’s been maintained over several months. Subsequently, the price might touch the lower boundary of the established flag pattern.
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2024-08-30 23:43