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The Solana price plummeted more than 7% in the last 24 hours to trade at $200.74 as of 9:58 p.m. EST as investors dump their holdings in the crypto.
This drop in the SOL price comes amid a broader crypto market correction, with the total capitalization of the digital asset space falling over 5%. Crypto market leaders Bitcoin (BTC) and Ethereum (ETH) saw their prices drop more than 4% and 8%, respectively.
Solana Price Clinging To The $200.12 Support
4-hour chart for SOL/USD (Source: GeckoTerminal)
The Solana price dropped below the support at $216.88 in the last 24 hours, and is subsequently testing the next technical safety net at $200.12. Should sellers continue to exert pressure on SOL, the crypto might plunge to the $184.55 mark. In an extremely bearish case, the crypto could even fall to as low as $168.39.
On the other hand, traders identifying SOL’s current price as a buy opportunity might lead to a rebound from the $200.12 support. The Solana price could then try to reclaim the $216.88 support before potentially soaring to as high as $231.25.
Technicals Point To A Continued Drop For The Solana Price
A bearish scenario seems to be more likely to play out for the Solana price in the coming 24 hours. Indicators on the altcoin’s 4-hour chart, such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), warn SOL might keep falling through the course of the next trading day.
In the last few hours, RSI readings have undergone a steep drop from the high 70s to low 30s. This suggests overwhelming seller strength. With the negative slope of the RSI line, it appears bears have no intention of easing their pressure on the Solana price any time soon.
Momentum is also in favor of sellers after the MACD line broke away below the MACD Signal line in the last few hours. The growing gap between the two lines could also be seen as an indication that SOL’s negative momentum is picking up steam.
While SOL tries to hang onto support, investors are turning their attention to a new Solana layer-2 project by the name of Solaxy (SOLX) to grow their portfolios.
Investor sentiment in the market might have taken a knock in the last 24 hours, but several experts remain bullish on SOLX. Among them is an analyst from the 99Bitcoins YouTube channel, which has over 719K subscribers. In a recent video, the analyst said that the new crypto has the potential to soar 100X after its official launch.
Unlocking Solana’s Full Potential
Solana has gained a substantial amount of traction in the market in recent months due to its embrace of the booming meme coin space. However, the hype around these tokens is starting to test the blockchain’s computational capabilities. If something does not change soon, Solana could experience another outage, especially with talks of an impending meme coin supercycle.
Solaxy, with its native layer-2 network, is the first project aimed at alleviating some of the computational workload on the Solana blockchain. Through its scaling technologies, the project will unlock higher network speeds for the already-fast Solana while simultaneously slashing transaction fees.
In addition to scaling the Solana blockchain, Solaxy will also try to become a bridge between Solana and Ethereum through its token’s multi-chain presence.
Should the project successfully connect the two most prominent blockchains in the Web3 space, it will activate a new and improved ecosystem that combines Solana’s speeds and low fees with Ethereum’s robust infrastructure.
SOLX’s ICO Goes Parabolic
Investors are rushing to buy SOLX during its ongoing presale phase, as evident by the more than $9 million the project has raised so far. With the bullish predictions from experts combined with its mission to scale Solana and connect the chain to Ethereum, it’s easy to see why a buying frenzy has erupted around the new project.
Another factor that could be pulling investors in is the 383% staking APY on offer to presale buyers. To gain access to these rewards, investors will first need to acquire SOLX through the simple buy widget embedded on the project’s website.
Selling for $0.001594, the crypto can be bought with either crypto or bank card. Once purchased, investors will then need to navigate to the staking page on the website and lock up their tokens for the passive rewards.
Purchase and stake SOLX here for the 383% APY.
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