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The Solana price is down more than 11% over the last week following a minor 24-hour gain to trade at $173.32 as of 9:59 p.m. EST as investors decide to limit their exposure to the altcoin.
This decline in the SOL price in the last 7 days is part of a longer-term negative trend that has seen the crypto decline more than 31% over the past month.
Solana Price Trying To Break Above The $177.34 Resistance
4-hour chart for SOL/USD (Source: GeckoTerminal)
The Solana price is trying to overcome the resistance level at $177.34 after rebounding off of the $162.31 support in the last 48 hours, GeckoTerminal data shows. Should the altcoin close a 4-hour candle above the $177.34 barrier within the next 12 hours, it could have the technical foundation needed to rise to as high as $199.89 in the short term.
On the other hand, a rejection from the $177.34 resistance could lead to a more bearish scenario playing out, wherein SOL retests the aforementioned $161.48 support. A drop below this key price point might then result in the Solana price plunging to the subsequent support level at $143.94.
Technicals Warn The Solana Price Might Get Rejected By Resistance
Looking at technical indicators, there are warning signs that suggest the Solana price might struggle to overcome the $177.34 resistance. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) on the 4-hour chart show that buyers are exiting SOL’s order books as the altcoin approaches the technical resistance.
RSI readings on the 4-hour chart have risen from low oversold territory at 16 to the mid 40s in the last 48 hours, signaling growing buyer strength. The current RSI value below 50 suggests that sellers still have control of the Solana price, however, while the negative slope of the RSI line warns of diminishing buyer strength in the last couple of hours.
Meanwhile, the MACD line has started to collapse towards the MACD Signal line over the past few hours as well. While the current alignment of both of these technical indicators could be seen as a sign that SOL is in a bullish trend, the narrowing gap between them might be an early indication of an upcoming trend reversal that favors bears.
As Solana tries to break resistance, investors continue to flock to SOL layer-2 meme coin Solaxy (SOLX) for gains. In a recent video for its over 725K subscribers, popular YouTube channel 99Bitcoins said that SOLX has the potential to soar 100X after its launch.
The First Scaling Solution Dedicated To The Solana Ecosystem
Solaxy is the first layer-2 scaling solution that aims to improve transaction efficiency within the Solana ecosystem. Its timing could not be more perfect, as the Solana network faces increasing computational stress and subsequent high levels of congestion due to the hype around SOL-based meme coins.
As opportunistic developers continue to deploy new tokens to try to profit from the hype around meme coins, Solaxy will help Solana deal with the overwhelming transactional workload.
It will do this by running its native layer-2 chain in parallel to the Solana mainnet, processing transactions off of the Solana network, and then submitting batches of transactions to the layer-1 for final validation. This approach to transaction processing has already been proven to be a successful way to help a network scale within the Ethereum ecosystem.
As part of its mission to scale Solana, Solaxy will also bridge the popular network with the Ethereum blockchain. This connection will lead to the creation of a new-and-improved Web3 infrastructure that can meet the growing demands of decentralized application and meme coin developers in both ecosystems.
Investors Rush To Buy SOLX At Presale Prices
Solaxy’s ongoing presale has gone parabolic, and has already raised more than $22.6 million. A potential factor that could be behind the buying frenzy at this early stage might be the attractive staking initiative on offer to ICO investors. Anyone that buys and stakes SOLX tokens during the presale will unlock a 179% APY.
To get in on these high crypto rewards, investors will first need to acquire some SOLX through the simple buy widget embedded on the project’s website. Currently selling for $0.001642, SOLX can be bought with either crypto or bank card. After acquiring some SOLX, investors then need to navigate to the staking page on the website and lock up their tokens.
Buy SOLX here before a presale price hike in 41 hours to lock in the best deal.
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