Solana managed to weather a cryptocurrency market downturn last week, which saw Bitcoin and Ethereum prices drop by around 9%. SOL emerged as one of the best-performing cryptocurrencies, surpassing the resistance level and reaching above the $200 milestone on March 18, 2024. The token exceeded BNB in overall market value and dethroned it to secure the 4th spot in the market. Nevertheless, the ‘Ethereum killer’ token has experienced a 10% decrease over the last 24 hours and a 6% drop in performance over the past week. Is it advisable to purchase, trade, or hold onto your assets?

Current Market Performance of Solana Price

The current trading price of Solana is $169.26, showing a 9.6% decrease in value. It has documented a trading volume of $4.7 billion over a 24-hour period, experiencing a drop of 35.41%. This shows that the level of SOL being traded has decreased. Investors’ engagement with Solana and their interest and liquidity levels appear to have decline as well.

The decrease in price has driven down the total market value. Its market capitalization stands at $75.65 billion, placing it in 5th position on CoinMarketCap. BNB has regained the number four spot with a market capitalization of $83.14 billion.

Opportunities and Concerns  Over Solana

Solana’s network has seen increased activity due to its accessibility and low fees, as well as the recent memecoin frenzy boosting growth. Over 20,000 new tokens are being created on Solana daily, leading to concerns about rug pulls from illiquid tokens. To address this issue, SolanaFM introduced blue checkmarks for token verification and the DEX Jupiter is helping users identify legitimate tokens. 

Despite these challenges, sentiment around Solana remains positive, with more positive comments than negative ones and growing social volume. However, the recent price of SOL has dropped by 9% to $169.26, possibly facing the $200 barrier. This correction may be temporary, but the decrease in Chaikin Money Flow suggests reduced buying pressure that could impact SOL’s performance in the future. 

According to CoinGecko Research, Solana has emerged as the top blockchain ecosystem this year, capturing 49.3% of global crypto investor attention with its price recovery and strong projects like Pyth and dogwifhat. Coinbase noted $11 billion in transactions on Solana in 24 hours, driven by smaller tokens and meme coins. 

The network has seen a surge in activity on DEXs like Jupiter and Raydium, allowing them to gain market share from Ethereum DEXs. Solana’s on-chain volumes and network fees have also reached new highs, indicating a rise in user engagement and network activity. This shows a positive outlook for future SOL prices

Buy, Sell, or Hodl?

According to the technical analysis for SOL on a one-hour chart, short-term moving averages signal ‘Sell’. This suggests short-term downward momentum.

The MACD level is negative at 3.11 and indicates a “Sell” signal. This suggests a bearish momentum for Solana price. On the other hand, the RSI (Relative Strength Index) is at 29.39, which is in the neutral zone but closer to oversold levels. It doesn’t provide a clear indication for short-term action.

Fibonacci support levels show that should the bears prevail, the price could decline further, finding support around $157.75. However, should Solana price drop even more the price could settle at  46.09, which represents a significant downside level.

The long-term moving averages (100 and 200) also indicate a “Sell” signal, suggesting a bearish sentiment in the long run. The strongest resistance level in case of a price increase would likely be around $225.31. Should the bulls prevail and the price increase to a point where it breaks through this level, it could face resistance at $316.33,  which represents a significant upside level.

Based on the technical indicators provided, on short-term, considering the bearish signals from moving averages and MACD, it might be prudent to consider selling or holding off on buying until clearer bullish signals emerge. 

The long-term moving averages and Fibonacci analysis also suggest a bearish outlook. Therefore, it might be wise to avoid buying for long-term investment until there are clear signs of a trend reversal.

Before diving into any trading decisions, it’s important to take some time for further research and look into other aspects like the market sentiment, the fundamental analysis of the asset, and how much risk you’re comfortable with. And don’t forget to set up stop-loss orders to help you manage any risks that might pop up along the way.

 

The post Solana Price Has Dropped 9%; Buy, Sell or Hodl? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am