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The Solana price corrected more than 2% in the last 24 hours to trade at $124.68 as of 10:20 p.m. EST as investors lower their exposure to the crypto.
Despite the slight drop in the SOL price, the altcoin’s weekly performance remains over 4% in the green.
Solana Price Drops Below A Key Support Level
4-hour chart for SOL/USD (Source: GeckoTerminal)
The Solana price dropped below a support level at $127.03 in the last couple of hours, according to data from GeckoTerminal. Should the crypto fail to recover back above this key level within the next 4 hours, it could stand the risk of dropping to the next major support at $116.01. In an extremely bearish case, SOL could even fall to as low as $104.99.
On the other hand, SOL managing to recover to back above $127.03 might lead to a more bullish scenario playing out. Traders will likely then start to enter into long positions for the altcoin, which could lead to a rise to the $136.62 resistance level.
Technicals Suggest The Solana Price Could Drop Some More In The Coming 24 Hours
From a technical standpoint, indicators on SOL’s 4-hour chart suggest the Solana price might continue to drop in the next few hours, with both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) showing bearish signs.
During the past 48 hours, the MACD line dropped below the MACD Signal line. This technical event is usually seen as a sign that a crypto has entered a bearish trend.
Ever since the two technical indicators crossed, the MACD line has been unable to break back above the MACD Signal line. What’s more, the gap between the two lines has started to grow again. This suggests that SOL’s bearish momentum is picking up steam.
RSI readings have also plunged from the high 40s to the high 30s in the last 24 hours, warning of decreasing buyer strength and increasing seller power. With the negative slope of the RSI line, it seems sellers are still accumulating strength against buyers. If they choose to act on the power imbalance on the 4-hour chart, bears could end up pushing SOL down further.
With the Solana price still at the mercy of sellers, investors will likely turn to a new layer-2 presale token called Solaxy (SOLX) to grow their crypto portfolios. Experts are bullish on SOLX. Among them is prominent Youtube channel 99Bitcoins, which has over 725K subscribers and predicted that the crypto could soar 100X after launch.
The First Layer-2 Project For The Solana Ecosystem
Solana has become the blockchain of choice for meme coin developers due to its high speeds and low fees. However, the surge in meme coins’ popularity in recent months has led to an influx of new tokens, which has also placed immense computational strain on the Solana infrastructure.
With even the US President himself launching a meme coin on Solana, the network has now become a victim of its own success. If something does not change soon, the blockchain could be at risk of suffering another outage.
This is where Solaxy comes in. As the first layer-2 project for the Solana ecosystem, Solaxy aims to alleviate the pressure on Solana’s technical resources coming from meme coins.
To do this, Solaxy will process and bundle SOL transactions off of the Solana mainnet using proven scaling technologies called rollups. It will then submit the batches of transactions to the Solana blockchain for final validation. This is the same approach to transaction processing that Arbitrum and Optimism have taken within the Ethereum ecosystem.
Not only will Solaxy bring layer-2 technology to Solana, it will also try to bridge the network with the Ethereum blockchain. This will lead to the creation of a new Web3 ecosystem that can meet the growing demands of decentralized app and meme coin developers. SOLX could then end up becoming the primary transaction layer between two of the most prominent blockchains.
Investors Rush To Buy SOLX At Presale Prices
Investors have poured more than $26.8 million into Solaxy’s ongoing presale so far, signaling a lot of confidence from the market in the project’s future.
Interested investors can buy SOLX via the widget embedded on the project’s website using either crypto or bank card. Selling for $0.001666, investors will want to act fast since SOLX’s price will undergo a presale increase in 15 hours.
After getting a hold of some SOLX, investors can also stake their tokens for an attractive 152% APY.
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