As a seasoned researcher with years of experience navigating the intricacies of the cryptocurrency market, I find myself closely monitoring Solana (SOL) and its current price action. The latest downturn, which has seen SOL dip below $150 yet again, is a stark reminder that even the most promising projects can face challenges in this volatile space.
The value of Solana (SOL) has been trailing behind other significant cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). Over the weekend, the token that competes in smart contracts endured another drop, falling below $150. Currently, it’s searching for immediate support at around $140.
Solana Price Market Movers: SOL Record Fund Outflows, Meme Coin Volume Tumbles
- Solana price recovery depends on the bulls’ ability to defend $140 support to beat the pressure emanating from record asset fund outflow, according to the latest CoinShares report. Digital asset investment products witnessed shallow inflows summing up to $30 million as investors adjusted their portfolios amid speculation that the Federal Reserve was unlikely to cut interest rates by 50 basis points in September.
While Bitcoin and Ethereum experienced inflows of $42 million and $4.2 million, Solana led the perk on the opposite end with a staggering $39 million in outflows. Based on the report, this marked “the largest (outflow) on record, as it (SOL) faced a sharp decline in trading volumes of meme coins, on which it heavily relies.”
- Meme coins in the Solana ecosystem show no signs of immediate recovery, especially with CoinGecko highlighting a 5.7% total decline in the last 24 hours. Decreasing trading volume to marginally above $1 billion implies traders have low interest in Solana-based tokens. Dogwifhat (WIF), the largest token in the ecosystem, is down 6.4% to exchange at $1.35 as Bonk trades at $0.00001729. BOOK OF MEME hovered at $0.0066, down 3.5%.
Over the coming days, we’ll see crucial developments that could shape the final picture of cryptocurrencies for this year. If the Federal Reserve decides to reduce interest rates, Solana (SOL) price might gain substantial momentum. The Solana price is predicted to gather liquidity within the range of $130-$140 in order to propel a recovery above $200.
SOL Price Analysis: Consolidating Before Breakout
The Solana price is currently maintaining itself above the significant support level of $140. This level is crucial on the downside and sits below the 200-day Exponential Moving Average (EMA) at $152. If it drops below this point, a potential retest of the falling trend line around $130 could occur. Yet, keeping in mind that further accumulation by traders might lead to a significant bounce back, especially within the $10 support range.
When the Relative Strength Index (RSI) falls below 50, this indicates that sellers are currently in control. However, before considering to short SOL, it’s crucial for investors to verify that a fresh trend is emerging at the price level of $140.
According to data from Coinglass, the rise of 1.55% in Solana (SOL) futures open interest to $2.2 billion and a 7% increase in trading volume to $4.93 billion indicates a heightened level of market enthusiasm for SOL.
As a seasoned trader with over a decade of experience under my belt, I have learned to read between the lines when it comes to market trends and trader sentiment. The recent surge in Open Interest (OI) and trading volume on Solana suggests that either bullish optimism or indecision among traders is building up. While there’s always the possibility of a breakout in either direction, I personally believe that if Solana manages to hold its $140 support level, we could be looking at a potentially bullish outcome. This level has acted as a solid foundation for the token in the past, and I have seen similar patterns play out numerous times throughout my career. However, it’s essential to stay vigilant and adaptable, as market conditions can change swiftly.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- USD COP PREDICTION
- USD CLP PREDICTION
- USD ZAR PREDICTION
- USD PHP PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- PLI PREDICTION. PLI cryptocurrency
2024-08-19 16:48