The post Solana (SOL) Extreme Weakness: Key Reason Revealed appeared on BitcoinEthereumNews.com.

Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Recently there has been a lot of selling pressure on Solana, which has caused it to lose ground near important support levels. A sharp decline in the asset’s price performance is evident, and the general mood of the market points to a capital flight as investors search for the next profitable opportunity. The idea of active capital rotation provides a convincing justification for Solana’s difficulties on the market. As focus and funding move to more recent trendy projects, this pattern — which was first seen in Ethereum’s transition to Solana during its heyday — is now happening again. By looking at the chart, it can be seen that Solana is currently trading at about $186 after failing to hold onto support at $195. A failure to hold the 200 EMA at about $175, which has emerged as the next crucial support level, could indicate additional declines. In line with the general market trend of capital outflow, volume profiles show a spike during the most recent descending move, indicating increased bearish momentum. SOL/USDT Chart by TradingView As a result of the selling pressure that has dominated the asset, Solana’s Relative Strength Index (RSI) is close to oversold territory. An impending relief rally could be hinted at by oversold conditions, but any recovery might not last long in the…

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Filed under: News - @ December 22, 2024 11:19 am