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The Solayer price plummeted 37% in the last 24 hours to trade at $1.94 as of 6:17 a.m. EST.
The steep drop in the LAYER price comes as investors brace for 27.02 million tokens, worth around $52.41 million at current prices, to enter circulation after a massive token unlock this week.
Solayer has a market cap of about $388 million.
Solayer Price Loses A Support Level, About To Test Another
4-hour chart for LAYER/USD (Source: GeckoTerminal)
The Solayer price dropped below a support level at $2.3935 and is now approaching the next major level at $1.7129, GeckoTerminal data shows. If the altcoin drops below this technical safety net, it could be at risk of plunging all the way down to $1.1545 in the short term.
On the other hand, traders identifying the current Solayer price as a buy opportunity could mark the end of the crypto’s drop. In this alternative scenario, the altcoin might try to reclaim the support of the $2.3935 mark. A recovery back above this price point could then give LAYER the technical foundation needed to rise to as high as $3.0391.
Technicals Warn The Solayer Price Might Continue To Drop
From a technical standpoint, indicators on the 4-hour chart warn the Solayer price drop may not be over yet. Traders will want to monitor the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), which both suggest bears might continue pushing LAYER down in the short term.
That’s after the MACD line dropped below the MACD Signal line in the last 48 hours. Ever since the two technical indicators intersected, the gap between them has grown. Traders usually interpret the current alignment and growing gap between the MACD lines as a sign of growing bearish momentum.
There has also been a considerable drop in buyer strength in the last 24 hours, as evident by the decrease in RSI readings from above 50 to below 20 during this period.
The current RSI reading could be seen as a buy signal, because low RSI values suggest a crypto’s upside potential is greater than its downside potential. However, there are instances where the RSI remains low for an extended period of time. This is usually when a crypto is being dumped.
Given the growing bearish momentum signaled by the MACD indicator, as well as the negative slope of the RSI line, it seems the Solayer price might continue to drop in the next 24 hours.
As the Solayer price faces a continued drop, investors are flocking to the presale for new Solana Layer-2 token Solaxy (SOLX).
YouTube channel 99Bitcoins, which boasts over 725K subscribers, predicts a 100X rally for the crypto post-launch.
Solana About To Get Its Biggest Upgrade To Date
Initially launched as a more cost-effective and faster alternative to the clunky Ethereum network, Solana has become severely congested since its launch. This is partly due to the investor frenzy that erupted around SOL meme coins in recent weeks.
Even US President Donald Trump launched his own token on the Solana blockchain, pushing Solana’s congestion to critical levels.
Solaxy, the first layer-2 scaling solution for the Solana ecosystem, aims to eliminate congestion on the popular layer-1 network and prevent another SOL blockchain outage.
To achieve this, the project will shift the majority of Solana’s transaction processing work off of the mainnet and on to its native sidechain.
There, Solaxy will process and bundle transactions using scaling technologies called rollups. It will then submit the batches of transactions to the Solana network for final validation.
While Soalxy’s approach to transaction processing still calls on the Solana mainnet, it is much more efficient given it submits multiple transactions at a time instead of the legacy one-by-one method.
In addition to scaling Solana, Solaxy will also bridge the network with Ethereum to create a new super Web3 platform. Developers will then be able to build the next best app in the Web3 space without having to worry about limited liquidity, slow speeds, or restricted scalability.
Solaxy Presale Goes Parabolic
Investors are betting big on SOLX’s future, and have already sent more than $33.43 million to the project’s ongoing ICO.
SOLX is on sale for $0.001716 right now and can be bought using crypto or bank card. After buying SOLX, investors can also stake their tokens for a 120% annual return.
Buyers looking to secure the best deal will want to hurry because the SOLX price will increase in less than 29 hours.
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