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The Solana price dropped 3% in the last 24 hours to trade at $123.37 as of 2.30 a.m. EST on trading volume that skyrocketed 49% to $6.23 billion.
The SOL price slump comes as DefiLlama data shows Solana revenue plunging amid the crypto and stock market crash.
Weekly revenue slumped to $4 million in the past week, from $55.3 million in mid-January when the meme coin market was booming amid optimism over Donald Trump taking office.
That optimism has now given way to trepidation as Trump triggers market chaos with his tariff war against Canada, Mexico and China.
Investment banking giant JPMorgan has increased the odds of a recession in the US to 40%, from 30% previously.
The CMC Crypto Fear and Greed Index has plunged to 15, showing a reading of ”extreme fear” that is its lowest ever.
Solana Price Prediction
Following the plunge that happened over the last few days, SOL hit its lowest point at $113.76 a few hours ago. This was the lowest it has been since February 2024, and while many have started selling rapidly, others saw it as an opportunity to buy the dip, which allowed Solana to recover to its current value.
However, the recovery was short-lived, and right now, SOL has been trading sideways for several hours. Its Bollinger bands narrowed down quite sharply, which is a bearish sign, signaling uncertainty and fear, with traders lacking the optimism to commit to the coin.
Meanwhile, its Relative Strength Index (RSI) value has seen quite a bit of activity, showing that the bears and the bulls are in conflict. As the sell-off reached its highest point, the project’s RSI dropped nearly to the value of 20 deep in the oversold zone, only to then skyrocket to the start of the overbought zone at 70 as traders bought the dip.
Since then, it has been fluctuating between 50 and 70, with fluctuations growing smaller with time. The last two hours have seen the RSI go up and down between 50 and 60, suggesting that a lot of micro-trading has been taking place, as traders wait to see what the market’s next move will be.
As for the price, it is still showing signs of recovery, but its progression is slow, and SOL could easily see another rejection from resistances at $125 and $130, causing another potential drop.
Promising Alternative To Solana
While Solana struggles, its first-ever Layer-2 project, Solaxy (SOLX), continues to thrive in presale, with funds raised now exceeding $25.8 million.
Solaxy attracted investments because it acts as a new scaling solution for Solana’s ecosystem.
Despite the fact that Solana was created to be a faster, cheaper network than any of its major competitors, its scalability has reached its limits as its network started seeing greater amounts of traffic.
This led to network congestion issues, which were reflected in failed and delayed transactions that damaged its reliability.
Solaxy emerged to solve the problem, offering infinite scalability while maintaining fast and low-cost transactions.
It views itself as the next step in the evolution of blockchain technology, and it believes that it can unlock the full potential of Solana’s network.
As mentioned, its ICO blew up due to high demand for the solution it offers, not just for the SOL ecosystem, but also for ETH.
This is because the project intends to run simultaneously in both ecosystems and service both communities.
In the meantime, it will act as a bridge between the two competing blockchains, offering new opportunities and an easier way to move funds between them.
Influential crypto YouTuber ClayBro, who has over 136k subscribers, seems convinced that SOLX could soar once the crypto market rebound starts, helping Solana to thrive again.
Right now, SOLX tokens are selling for only $0.00166 apiece. Interested investors should buy before a price hike in a little more than 1 day.
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