9:00 a.m. ▪ 4 min reading ▪ by Mikaia A.
Solana’s SOL seems to be stuck around $104, with a drop of 9.8% in three days, raising concerns in the context of crypto competition. The robustness of Solana is questioned despite its capitalization of $45 billion, comparable to BNB. A week earlier, SOL declined from its peak at $126, sparking concerns of a downtrend. While investors are scrutinizing the evolution of Solana in the face of technical challenges.
SOL de Solana, in bad shape?
Recently, we saw Solana’s token rise to the top with a weekly rise of 15.34%. Behind this success, Orca, Solana’s decentralized crypto exchange platform, saw its weekly volume explode by almost 50%. The regular growth of the native crypto SOL would also come fromgrowing enthusiasm for WEN, a memecoin based on the Solana blockchain. And of theincreased volumes on Jupiter, a decentralized crypto exchange. Interest peaked with the JUP token airdrop scheduled for January 31.
« The price of Solana has fallen almost 10% in the last 48 hours, but Marcel Pechman says the increase in user activity is positive for the network. »
Solana (SOL) struggles to exceed $104, falling 9.8% in three days and 10.7% in one month, specifies Cointelegraph. Comparatively, Ethereum and BNB declined by 1.2% and 2.6%, respectively. This underperformance raises questions, especially with the robustness of the fundamentals of the Solana network. Resistance at $104 may be related to the capitalization of 45 billion dollars, aligned with that of BNB. However, BNB Chain with $3.54 billion in total value locked (TVL) surpasses Solana and its $1.6 billion, according to DeFiLlama.
A week ago, BeInCrypto reported that SOL crypto has declined since peaking at $126 on December 26, 2023. Daily and six-hour analyzes indicate a bearish trend. However, a recovery of the triangle support line could reverse the trend. SOL price has deviated from a 100-day ascending trendline and short-term symmetrical triangle, breaking through a Fibonacci support zone. The daily RSI showed a downtrend, suggesting selling pressure. Investors are closely watching market dynamics, wondering whether Solana will maintain its resilience in the face of current technical challenges.
Crypto in Peril – US Regional Banks Shake Up Markets
Markets, including cryptocurrencies, are weakening in the face of risks emanating from American regional banks. The Federal Reserve (FED) is keeping rates unchanged at 5.25%, putting pressure on the crypto industry. Investors fear theworsening regional banking crisis, exposed to pressures due to yields below current rates. New York Community Bancorp, after acquiring crypto-friendly bank Signature, has lost 42% since the end of January, marking a loss of $260 million in Q4 2023.
For his part, the pro-Ethereum founder of BitMEX, Arthur Hayes, foresees an initial negative impact on bitcoin. But a positive side effect on cryptos with rising inflation expectations.
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The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
2024-02-02 09:51:12
#Solana #Crypto #crossroads #Technical #challenges
