Solana Headed Towards Critical Support At $137.08
Solana (SOL) has been experiencing a significant market correction over the past week, reflecting the broader trends seen across the cryptocurrency market. In the last 24 hours alone, Solana has witnessed a decline of 3.08%, trading at $143.45 as of 09:37 UTC.
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Solana Approaching A Make Or Break Point
The charts indicate that Solana is approaching a pivotal point that could determine its immediate future, with possibilities of a bullish resurgence or a steep decline to $100 or lower.
Source: TradingView
Solana price has been range-bound for the past three weeks, fluctuating between the $174.14 resistance and the $137.08 support levels. Since June 6, when the bulls failed to break through the $174.14 resistance, bearish sentiment has dominated, leading to an accelerated selloff. Solana is now nearing the $137.08 support, a critical level that, if breached, could see the cryptocurrency plummet below $100 within the next week.
The $137.08 support zone is currently the focus for market participants. Should the bears prevail and this support level is breached, Solana could face a sharp decline, potentially dropping below the $100 mark. Conversely, if the bulls defend this level, two potential scenarios could unfold based on trading volumes.
A robust and bullish reversal could propel Solana past the $174.14 resistance in the first scenario. This breakout could signify the start of a new bull run, with the potential to reach highs of $200 in the short term. In the second scenario, Solana might continue its range-bound trading between the $137.08 support and $174.14 resistance, persisting until a broader market uptrend resumes.
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Bitcoin A Critical Factor As Solana Price Approaches Support
A significant factor influencing Solana’s price movement is the performance of Bitcoin. Bitcoin’s recent downtrend is pushing the current altcoin market correction. After failing to hold the $72,000 price level, Bitcoin price has declined, exacerbated by the Federal Reserve’s decision to maintain high interest rates for most of 2024.
Revolutionary things always have critics. #Bitcoin pic.twitter.com/A4ezA8fBiu
— Bitcoin Magazine (@BitcoinMagazine) June 14, 2024
If Bitcoin loses its $65,000 support, it could drop to as low as $57,000, potentially dragging altcoins, including Solana, to lower levels.
Bitcoin Offering A Glimmer Of Hope
However, Bitcoin’s current resilience above $65,000 offers hope for Solana and other altcoins. Should Bitcoin stabilize and rebound, Solana’s $137.08 support could hold firm.
Solana Internal Factors a Positive Indicator as Well
Additionally, positive developments within the Solana ecosystem could boost investor confidence and demand for SOL.
Solana Is Being Used for Real World Applications
One such development is the increasing real-world adoption of Solana’s technology. Recently, the Solana team announced the launch of a fully functional music app built on their platform.
you know it’s solana summer when your music app is built on solana, too
— Solana (@solana) June 13, 2024
In a tweet, they remarked, “You know it’s Solana summer when your music app is built on Solana, too.” This signifies growing confidence in Solana’s blockchain capabilities.
Solana Team Working To Make Solana Blockchain Adoption Easier
Further boosting Solana’s ecosystem, the team also launched a new platform designed to simplify the process for businesses to develop and launch on Solana. The platform, named Bond, aims to enhance customer engagement through personalized, transparent, and engaging digital experiences. As Solana Labs tweeted, “Bond uses blockchain to create personalized, transparent, and engaging digital experiences, deepening customer connections and driving loyalty.”
1/ Today, Solana Labs proudly announces the launch of Bond, an innovative platform for global brands to elevate customer engagement. Bond uses blockchain to create personalized, transparent, and engaging digital experiences, deepening customer connections and driving loyalty 🧵👇 pic.twitter.com/WZHU3aDiD9
— Solana Labs (@solanalabs) June 12, 2024
Solana Remains King Of Meme Coins
Moreover, Solana’s low transaction fees have made it an attractive platform for launching meme coins, which continue to be a major draw for investors in the 2024 crypto cycle. This influx of meme coins could drive demand for SOL, potentially providing the momentum needed to maintain the $137.08 support and facilitate a bullish reversal.
What Next for Solana?
Solana stands at a crucial juncture. The next few days will be critical in determining whether Solana breaks down to $100 or stages a bullish comeback to $200. The broader cryptocurrency market trends, particularly Bitcoin’s performance, and ongoing positive developments within Solana’s ecosystem will be pivotal in shaping Solana’s immediate future. Overall, the bullish trigger factors outweigh the dangers. This means a rally to $200 could come by surprise.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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