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The Solana price plummeted 8% in the past 24 hours to trade at $126.41 as of 11:38 p.m. EST on trading volume that dropped 3% to $5.5 billion.
This drop in the SOL price comes after the crypto market retraced 8% in the last 24 hours to a $2.7 trillion market capitalization, according to Coingecko data.
Solana Price Analysis: Downtrend Continues Amid Bearish Pressure
Looking at the 4-hour chart of SOL/USDT, a well-defined descending wedge, marked by lower highs and lower lows, can be observed.
This bearish pattern has dominated the SOL price action since mid-January, preventing any significant breakout attempts.
Historically, the falling wedge pattern results in a breakout after the declining trend lines converge. However, the Solana price has invalidated any breakout potential, as it trades below the lower boundary of the wedge, according to GeckoTerminal data.
The 50 Simple Moving Average (SMA) on the 4-hour chart, currently at $156.26, acts as dynamic resistance. SOL has consistently failed to break above this level, showing continued bearish sentiment.
Meanwhile, the 200 SMA is sitting at $193.94, indicating that the price of SOL is far below its historical trend, reinforcing the downtrend.
Moreover, the Relative Strength Index (RSI) is at 28.62, which signals that SOL is in the oversold territory. Historically, an RSI below 30 suggests a potential relief bounce, but the prevailing downtrend may limit any strong recovery.
SOL Price Prediction
Given the current technical setup, the short-term outlook for SOL remains bearish unless a breakout above the descending wedge occurs. If the Solana price breaks below $120, the next key support area is around $100, which could trigger more downside momentum.
Conversely, if $120 holds as support, there might be a short-term bounce towards $140–$150. A reversal of the downtrend would require the price of SOL to break above $156 (50 SMA) and eventually reclaim the $200 level.
Meanwhile, investors are buying into a new layer-2 Solana meme coin called Solaxy (SOLX). According to 99Bitcoins, a popular crypto YouTube channel with over 725K subscribers, Solaxy has the potential to soar 100X post-launch.
Solaxy Presale Charges Towards $24 Million – Best Crypto To Buy Now?
Solaxy, the first major Solana layer-2 coin, has raised $23.8 million in its presale and continues to grow.
This surge speaks volumes about the growing excitement surrounding Solaxy and its potential to tackle Solana’s long-standing scalability challenges.
Solana has struggled in the last month, mainly due to the frenzy fueled by a wave of Trump-themed meme coins like TRUMP and MELANIA that were launched after the US presidential election, and led to serious network congestion across Solana.
With Solana struggling to keep up during peak network activity, investors are betting big on Solaxy.
🚨 Solaxy is now live in Upcoming Tokens! 🚨@SOLAXYTOKEN gives holders an opportunity to join the first-ever Solana Layer 2 blockchain.
Solaxy is set to enhance blockchain innovation through limiting congestion, reducing failed transactions, and improving scalability on SOL.… pic.twitter.com/satNF6zFNF
— Best Wallet (@BestWalletHQ) December 17, 2024
Solaxy takes a new approach to solving Solana’s congestion problems. This layer-2 solution eases network traffic by handling transactions off the main blockchain, creating a faster processing system for Solana.
By doing this, Solaxy reduces the strain on Solana’s mainnet. Transactions go through its platform separately, then get bundled together before being sent back for final verification.
This process lowers fees and speeds up transactions, especially during high-traffic periods when Solana usually faces delays.
Another massive utility of Solaxy is that it offers the best of both Ethereum and Solana. SOLX merges the benefits of Ethereum’s liquidity and growing decentralized finance ecosystem with Solana’s efficiency and speed, thereby connecting the two most prominent crypto ecosystems in the Web3 space.
Solaxy and $22M Funding for Solana Scaling — Revolution or Just Hype? 🧵
1/ Solaxy raised $22.7 million from presale to tackle Solana’s congestion.
This Layer-2 processes transactions off-chain, speeds up execution, and lowers fees.SOLX presale price: $0.001642/token.
Staking… pic.twitter.com/4VVYTpWvaj— NYC (@NgYC_87) February 27, 2025
The project’s staking program also offers token holders a huge 170% APY.
Investors interested in participating in the presale can visit the official Solaxy website to buy SOLX tokens for $0.001648 each using BNB, ETH, USDT, or a bank card. Buy before a price hike in less than 11 hours to secure the best deal.
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Best Wallet - Diversify Your Crypto Portfolio
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