The leading cryptocurrency Bitcoin (BTC) price has experienced a significant downward trend. This decline in Bitcoin has also impacted altcoins. The popular smart contract platform Solana (SOL) faced a market-wide crash, dropping to $127.95. This level marks the lowest price SOL has reached since early May 2024.
Analytical Reports on SOL
According to the cryptocurrency analytics company CoinGecko, Solana’s price has dropped by 7.5% in the last 24 hours, hovering around $137. The SOL price was moving within a significant formation known as a symmetrical triangle. This type of market structure can break in either direction. Solana’s previous trend was upward, which could be a crucial factor in determining how the symmetrical triangle will resolve.
Solana’s price movement is below the 50-day level but is above the 200-day simple moving average (SMA), indicating some struggle between bulls and bears. The 200-day SMA provides support, while the 50-day SMA offers resistance. The former is expected to hold as it supports the upward trend. If the mentioned formation breaks upward, SOL could rise by 63% to $292. Another scenario is a downward break.
Two Scenarios for SOL
The cryptocurrency has strong support levels around $87 and $56. Despite current market conditions, Solana’s 24-hour trading volume has surged by 153%, indicating increased investor interest and a potential price rise soon. This increase in network activity is supported by statistics. The number of active addresses on the network reached an all-time high of 41.65 million in May.
According to The Block, as of June 18, 2024, active addresses have decreased compared to the previous month. Coinalyze shows that total Solana open interest (OI) has been declining since June 4, 2024, indicating an outflow of funds from the asset. However, SOL OI shows strong support around $1.36 billion. Consequently, Solana’s price has shown significant resistance following the general market crash. Despite initially dropping by 11%, the token quickly recovered and maintained its bullish market structure.
