As a researcher with experience in cryptocurrency markets, I have closely observed Solana’s price action over the past few days. The altcoin saw a significant rally between May 15 and 22, reaching a high of $187.39, but since then, it has experienced a massive decline. The charts indicate that both bulls and bears are active, making this a crucial time for Solana price.
Between May 15 and 22, Solana experienced a remarkable price surge. Yet, following this rally, the altcoin has plummeted significantly and has been on a downtrend ever since. However, it’s important to note that both bullish and bearish forces are at play in Solana’s chart. The volatility suggests that the price could swing in either direction in the upcoming hours, making this a pivotal moment for Solana investors.
Previously, Solana reached its peak this month at $187.39, intending to challenge the previous March high. However, a sudden decline caused Solana to retreat back to its starting point.
In this post, we’ll delve into the reasons behind Solana’s persistent price decline and attempt to forecast whether it will experience a rebound or further decrease.
Why Is Solana Price Declining?
Solana’s price indicators suggested a potential downturn following news of increased Ethereum ETF approval chances. Bloomberg analysts reported a 75% likelihood of SEC approval based on subtle hints, which further pressured Solana’s price to hit a low of $163.38. Despite this dip, the current trading price is at $169.70 with a market capitalization of $76.26 billion. However, there has been a significant decrease in transaction volume, down by 56%.
As a crypto investor, I’ve noticed an interesting trend in the Solana ecosystem following the Ethereum ETF approval. Solana Proof-of-Stake (PoS) validators have been actively unstaking their SOL tokens, with approximately 3.5 million Solana tokens being unstaked between May 20 and 24. At current market prices, these unstaked SOLs are now worth over $594 billion. However, it’s important to note that the total amount of staked SOL is currently limited to 365.3 million tokens.
Based on the available data, significantly decreasing the amount staked can cause short-term volatility or instability within Proof of Stake networks.
What’s Coming Next For Solana?
Currently, Solana is in a correction phase, recovering from the excessive buying that took place earlier in the week. The introduction of the Ethereum ETF has triggered selling pressure for Solana, leading to its recent price decrease. However, there have been signs of recovery since yesterday, with Solana gaining a 2.5% increase. Further potential growth may be on the horizon as the market calms down and the excitement surrounding the Ethereum ETF subsides.
Additionally, there have been preliminary talks among crypto industry heads and businesses regarding a potential Solana ETF. Given its significant market presence following Bitcoin and Ethereum, this is a growing topic of interest. Presently, Ethereum’s influence on Solana’s price remains prominent. As investors grapple with the uncertainty surrounding Ethereum’s dominance and the potential for further price drops, they are cautiously holding back to maximize their profits.
In conclusion, some analysts are optimistic that Solana’s price may pull back but could eventually reach $216 in the near future. The MACD indicator, among other technical signals, is currently suggesting an uptrend.
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2024-05-25 14:37