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The Solana price is down over 10% on the weekly timeframe after a minor 24-hour loss to trade at $125.06 as of 9:39 p.m. EST as traders dump their holdings in the altcoin on the market.
While the SOL price dropped over the past 24 hours, trading activity for the crypto in the same time period jumped more than 77% to over $3.1 billion.
Solana Price In A Consolidation Pattern
Daily chart for SOL/USD (Source: GeckoTerminal)
The Solana price has been in a consolidation phase between $119.06 and $149.45 in the last 2 weeks, according to data from GeckoTerminal. This period of sideways trading could be due to traders waiting for a confirmation of SOL’s next move before entering the market.
Should the Solana price start to rise, it might try to flip the resistance level at $149.45 into support. Thereafter, continued pressure from buyers could end up pushing SOL all the way up to $183.04 in the short term.
On the other hand, a drop below the $119.06 support might expose the Solana price to the risk of plunging all the way down to $87.07 in the short term.
Bears Might Push The Solana Price Down More In The Next 48 Hours
From a technical standpoint, indicators on SOL’s daily chart warns the crypto’s price might drop in the next 48 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are starting to show early bearish signs.
In the last 48 hours, the MACD line has started to drop towards the MACD Signal line. Traders might see the current alignment of the two technical indicators and the narrowing gap between them as an indication of weakening bullish momentum. The MACD line crossing below the MACD Signal line could confirm that SOL has entered a negative trend.
Meanwhile, the RSI has levelled off in the low 40s. The latest reading below the neutral 50 mark suggests sellers have a slight upper hand over buyers on the daily chart. If bears choose to capitalize on this advantage, it will be easier for them to force the Solana price down in the short term than it will be for bulls to push SOL up during the same period.
As traders wait for a confirmation of what the Solana price will do next, investors keep flocking to the presale for a new project called Solaxy (SOLX) for gains. This is as popular YouTube channel 99Bitcoins, which has over 725K subscribers, predicts SOLX could soar 100X after launch.
The First Scaling Solution For Solana
Solaxy is a pioneering project given it’s the first layer-2 scaling solution for the Solana ecosystem. This comes amid a surge in hype around SOL-based meme coins in recent weeks, which has led to extremely high levels of congestion on the Solana network. Even US President Donald Trump launched his own token on the layer-1 blockchain, worsening the situation.
If something does not change soon, Solana could suffer another outage. This is where Solaxy comes in.
The project will alleviate the stress on Solana’s infrastructure by bundling SOL transactions off of the Solana mainnet and on its own sidechain using technologies called rollups. Thereafter, it will submit the batches of transactions to the layer-1 for final validation.
This approach to transaction processing has been tried and tested within the Ethereum ecosystem through solutions such as Arbitrum and Optimism. It has also proven to increase transaction efficiency and subsequently lead to a high degree of scalability for a major layer-1 blockchain.
In addition to scaling Solana, Solaxy will bridge the network with the Ethereum blockchain as well. This will create a new super Web3 ecosystem that leverages the strengths of two of the most prominent blockchains in the crypto space. SOLX will then be positioned as a primary transaction layer between Ethereum and Solana, which will boost its utility.
Investors Bet Big On SOLX’s Future
Solaxy’s mission to scale Solana appears to have resonated with investors, who have poured more than $28.6 million into SOLX’s ongoing presale. This buying frenzy at this early stage is likely to continue given the 142% APY on offer to buyers who lock up their tokens during the presale phase.
Interested investors can acquire SOLX for $0.00168 apiece via the buy widget embedded on the project’s website using either crypto or bank card. Once purchased, the tokens can then be put to work through the staking page on the website.
Potential buyers who want to lock in the best rate will want to act fast, because SOLX’s price will undergo a series of presale increases as its ICO progresses. The next price hike is scheduled for 15 hours from now.
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