Solana Crashes Below $150 Level: Is A Major Correction Looming?
Solana Crashes Below $150 Level: Is A Major Correction Looming?
Solana Failed to hold above an important psychological level of $150 indicating loss of bulls interest.
The RSI and 14 day SMA line made a bearish crossover indicating the extended selling pressure in the short term.
Solana crypto is unable to find grounds and has crashed below a major psychological level. The global market cues have extended the losses of the SOL investors thus creating a fear among the Investors.
However, the long term trend still lies on a bullish side. The recent price drop has invalidated the short term bullishness. The price has neared a strong demand zone where the bulls might try to push the price higher. However, bearish crossover in the RSI points towards the extended correction.
At the time of writing, the SOL crypto was trading close to $144.8 recording a positive intraday development of 1.58%. Solana is the fifth largest cryptocurrency in the ecosystem with a live market capitalization of $67.04 Billion USD.
Development Activity Shows Positive Growth In the Recent Sessions!
Solana crypto has been on a continuous fall for the last two consecutive weeks eroding over 12% of its market value. Despite noticing a significant fall in the recent sessions, the crypto still boasts at a profit of over 42.38% on a year to date basis.
<iframe title="Santiment Chart: Development Activity (SOL), Dev. Activity Contributors Count (SOL)" width="1170" height="425" src="embed.santiment.net/chart?ps=solana&pt=SOL&df=2024-05-14T18:30:01.441Z&dt=2024-06-15T18:29:59.441Z&emcg=1&emhwm=1&wm=dev_activity;dev_activity_contributors_count&wax=0;1&wc=#8358FF;#FF5B5B&ws={"transform":{"type":"moving_average","movingAverageBase":168}};" scrolling="no"></iframe>
While other metrics are drawing parallelly to the price i.e. declining, the development activity has noted a positive shift in the last one week. As per the data obtained by a financial website, app.santiment.net, the development activity as well as development contributors count has surged by threefold in a span of one week.
Furthermore, development activity serves as an indicator of ongoing projects and enhancements within the cryptocurrency's ecosystem. Typically, an uptick in development activity is associated with a positive influence on the cryptocurrency's price.
Can SOL continue to Correct or Show A Recovery?
From a technical point of view, the price has fallen below the 50 day Exponential moving average indicating weakness over the charts. However, the long term trend still lies on the positive side above the 200 day EMA.
The daily chart witnesses the formation of a declining parallel channel pattern with the price respecting the boundaries. Currently, the price is approaching the key $140 mark, which is considered a significant psychological level. A rebound from this support zone could potentially restore investor confidence.
However, the bulls need to surpass the $160 level in order to regain the trend control. The bears are dominating at the moment which may drag the price towards the $130 level if bulls fail to defend the recent support.
At the time of writing, RSI line and 14 day SMA line have withdrawn below the mean line indicating weakness over the charts. Moreover, a bearish crossover of both the lines was noted on the chart signaling a possible continuation in the short term.
Conclusion.
Solana crypto dipped below a critical $150 level, causing investor concern amid negative global market trends. With a current price of $144.8 Solana is the fifth largest by market cap at $67.04 billion. Moreover, the development activity has tripled in a week, suggesting positive ecosystem growth.
From a technical outlook, Solana has dropped below the 50-day EMA, indicating short-term bearishness, yet above the 200-day EMA, maintaining a long-term bullish stance. Currently, the price is nearing $140 support, with a potential bounce back to restore confidence. The technical indicators suggest continued weakness.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Solana Failed to hold above an important psychological level of $150 indicating loss of bulls interest.
The RSI and 14 day SMA line made a bearish crossover indicating the extended selling pressure in the short term.
Solana crypto is unable to find grounds and has crashed below a major psychological level. The global market cues have extended the losses of the SOL investors thus creating a fear among the Investors.
However, the long term trend still lies on a bullish side. The recent price drop has invalidated the short term bullishness. The price has neared a strong demand zone where the bulls might try to push the price higher. However, bearish crossover in the RSI points towards the extended correction.
At the time of writing, the SOL crypto was trading close to $144.8 recording a positive intraday development of 1.58%. Solana is the fifth largest cryptocurrency in the ecosystem with a live market capitalization of $67.04 Billion USD.
Development Activity Shows Positive Growth In the Recent Sessions!
Solana crypto has been on a continuous fall for the last two consecutive weeks eroding over 12% of its market value. Despite noticing a significant fall in the recent sessions, the crypto still boasts at a profit of over 42.38% on a year to date basis.
<iframe title="Santiment Chart: Development Activity (SOL), Dev. Activity Contributors Count (SOL)" width="1170" height="425" src="embed.santiment.net/chart?ps=solana&pt=SOL&df=2024-05-14T18:30:01.441Z&dt=2024-06-15T18:29:59.441Z&emcg=1&emhwm=1&wm=dev_activity;dev_activity_contributors_count&wax=0;1&wc=#8358FF;#FF5B5B&ws={"transform":{"type":"moving_average","movingAverageBase":168}};" scrolling="no"></iframe>
While other metrics are drawing parallelly to the price i.e. declining, the development activity has noted a positive shift in the last one week. As per the data obtained by a financial website, app.santiment.net, the development activity as well as development contributors count has surged by threefold in a span of one week.
Furthermore, development activity serves as an indicator of ongoing projects and enhancements within the cryptocurrency's ecosystem. Typically, an uptick in development activity is associated with a positive influence on the cryptocurrency's price.
Can SOL continue to Correct or Show A Recovery?
From a technical point of view, the price has fallen below the 50 day Exponential moving average indicating weakness over the charts. However, the long term trend still lies on the positive side above the 200 day EMA.
The daily chart witnesses the formation of a declining parallel channel pattern with the price respecting the boundaries. Currently, the price is approaching the key $140 mark, which is considered a significant psychological level. A rebound from this support zone could potentially restore investor confidence.
However, the bulls need to surpass the $160 level in order to regain the trend control. The bears are dominating at the moment which may drag the price towards the $130 level if bulls fail to defend the recent support.
At the time of writing, RSI line and 14 day SMA line have withdrawn below the mean line indicating weakness over the charts. Moreover, a bearish crossover of both the lines was noted on the chart signaling a possible continuation in the short term.
Conclusion.
Solana crypto dipped below a critical $150 level, causing investor concern amid negative global market trends. With a current price of $144.8 Solana is the fifth largest by market cap at $67.04 billion. Moreover, the development activity has tripled in a week, suggesting positive ecosystem growth.
From a technical outlook, Solana has dropped below the 50-day EMA, indicating short-term bearishness, yet above the 200-day EMA, maintaining a long-term bullish stance. Currently, the price is nearing $140 support, with a potential bounce back to restore confidence. The technical indicators suggest continued weakness.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
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