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The Solana price plunged over 6% in the last 24 hours to trade at $103.63 as of 10:15 p.m. EST as investors decrease their exposure to the altcoin.
With the recent drop, the SOL price is now down more than 17% on the weekly time frame.
Solana Price Resting On Support
4-hour chart for SOL/USD (Source: GeckoTerminal)
The Solana price is resting on a support level at $102.92, data from GeckoTerminal shows. If sellers are able to push the altcoin below this point within the next 12 hours, SOL could end up dropping to as low as $95.89 in the short term.
On the other hand, SOL maintaining a position above $102.92 for the next 12 hours could invalidate the bearish thesis. In this alternative case, traders might start to enter into long positions for the crypto.
The potential buy volume could then push the Solana price up to the closest resistance level at $109.41. Thereafter, a break above this barrier might lead to SOL climbing to as high as $116.97 if the bullish pressure persists.
Technical Indicators On The 4-Hour Chart Warn The Solana Price Might Drop Some More
Indicators on the 4-hour chart such as Exponential Moving Averages (EMAs) and the Relative Strength Index (RSI) warn the Solana price drop might not be over yet.
The 9 EMA is positioned below the longer 20 EMA. This is a classic indication that a crypto is currently in a short-term bearish trend. What’s more, both of the indicators are above the Solana price and acting as dynamic resistance levels for the altcoin. As such, any attempt by bulls to push SOL up will be faced with this technical obstacle.
In addition to the bearish EMA alignment, the current RSI reading below the neutral 50 mark suggests sellers have an upper hand against buyers. This means that it will be easier for bears to push the Solana price down than it will be for bulls to push it up in the next few hours.
The RSI line is also negatively sloped, which warns that sellers are growing even stronger against buyers.
While SOL’s short-term technicals flash bearish, investors keep flocking to new Solana layer-2 token Solaxy (SOLX).
Influential YouTube channel 99Bitcoins, which has over 725K subscribers, says SOLX could soar 10X after launch.
Solaxy To Boost Solana’s Transactional Capabilities
Solaxy is the first layer-2 scaling solution for the Solana ecosystem. In recent months, Solana has become congested due to the hype around SOL-based meme coins. With so much traffic on the network, users have started reporting failed transactions and noted a decrease in Solana’s processing speeds. These are the problems Solaxy aims to fix.
One of the ways that Solaxy will help is by shifting Solana’s transaction processing workload off of the layer-1 mainnet. Solaxy will bundle SOL transactions on its sidechain before submitting the batches of transactions to the Solana mainnet for final validation.
This approach to transaction processing is similar to that of layer-2 solutions such as Arbitrum and Optimism in the Ethereum ecosystem. It has also proven to be a successful way to increase the overall transaction efficiency of a layer-1 network.
In addition to helping Solana scale, Solaxy will also bridge the Solana and Ethereum blockchains. This will create a new and improved Web3 platform capable of meeting the growing needs of meme coin and decentralized application developers.
SOLX will then be positioned as a primary transaction layer between two of the most prominent blockchains in the crypto space.
Solaxy Presale Goes Parabolic – Charges Towards $30 Million
Investors are betting big on Solaxy’s future, as evident by the more than $29.4 million in early-stage funding the project has raised so far through its ongoing presale stage.
Besides the bullish predictions by experts like 99Bitcoins and the fact that Solaxy is the first Solana scaling solution, there is also an attractive staking offer that might be pulling investors in at this ICO phase.
Anyone who buys and stakes SOLX now will unlock a 138% APY. To get started, investors will first need to purchase some SOLX, which sells for $0.001688 apiece, via the simple widget embedded on the project’s website using either crypto or bank card.
Once bought, investors can then put their tokens to work by navigating to the staking page on the project’s website and locking up their tokens.
Buyers who want to secure the best deal will want to act fast, because SOLX’s price will undergo a presale hike in less than 15 hours.
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