Solana Price Recent Dive Sparks Concerns As SOL Plunges 8%
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The Solana price has sharply declined in the past 24 hours, dipping below the important $160 mark to trade at $153, a drop of over 8%.
This decline has also affected Solana’s market cap, which is now about $70.85 billion,
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Despite the price drop, Solana’s 24-hour trading volume has surged 27.7% to $1.71 billion, showing much market activity.
The price of #Solana is going down everyday and after how much will increase again? Comment 👎#SolanaETH#CryptoPayments pic.twitter.com/EJp3IqlI1E
— ACTIVE SHIB (@Activeshib) June 11, 2024
Over the past week, Solana (SOL) has been under constant downward pressure, with its price consistently making lower highs and lower lows. The altcoin has fluctuated between $175 and $150, and the company struggles to find a stable support level.
This declining trend has resulted in a more than 8% drop in value over the last seven days, causing concern among investors.
The Solana Price: Can The SOL Rebound?
Solana’s price saw a brief period of stability, trading within the range of $170 to $175. However, this stability didn’t last long. The bears soon took control of the market, leading to a significant price drop.
Within a short period, Solana’s price fell by 10%, indicating a strong bearish momentum, pushing the price down to a key resistance level at $157.
However, the price seems to have breached below this key support, sending it down to $152 near the lower boundary of the falling wedge formed.
SOLUSD Chart Analysis. Source: Tradingview.com
Additionally, Solana’s price has dipped below the 50-day Simple Moving Average (SMA) after approaching the 200-day SMA before the bears took control. This indicates a shift in momentum to the downside. However, if the overall market sentiment becomes bullish, there’s potential for the bulls to push the price back above both the 50-day and 200-day SMAs. Achieving this would be a strong signal of a potential bullish rally.
The Relative Strength Index (RSI) is also showing signs of recovery. It is currently hovering around the 32 mark, which is below the neutral level of 50. This suggests that selling pressure might start waning.
If bullish momentum picks up, the RSI could rise further, potentially moving into the overbought zone above 70. Such a move would indicate increased buying interest and further support Solana’s bullish scenario.
The MACD (Moving Average Convergence Divergence) indicator shows a bearish trend. The blue average line has crossed below the orange signal line at the neutral level, signalling a shift towards bearish momentum.
Additionally, the histogram bars indicate negative momentum in the price movement, further supporting the bearish outlook.
The Solana Price Bulls Ready On For Another Bull Rally
Even though Solana’s price has fallen from the $175 consolidation level and is currently trading below the 50 SMA, there’s still an upward trend in sight. The bullish momentum in SOL price could potentially push it back to around $205 in the weeks ahead.
However, if the bears continue to dominate below the 50 SMA, the bullish momentum might weaken, and the price could retreat towards the $126 support level.
Final Thought
Solana’s DeFi ecosystem is booming with increased activity, but SOL’s price is encountering unforeseen obstacles. Despite a surge in user participation across different decentralized applications (dApps) on the Solana blockchain, the price of SOL has unexpectedly dropped. however the SOL price indicators are in the oversold zone indicating that there is still a chance for the bulls to surface.
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