Solana (SOL) Plunges Over 13% – Will It Bounce Back?
22 Abril 2023 - 10:40PM
NEWSBTC
Solana is facing its share of the bearish sentiment in the
cryptocurrency market today. SOL has held above $20 since it jumped
from $18 to $24 on January 14. However, the coin has seen a
drop of 12.54% in price in the last seven days. Now, investors
wonder if there are any signs of recovery. Related Reading: OKB
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Crypto Market Plunge Affects Solana After the collapse of Alameda
Research and FTX last year, SOL price joined the trend of price
losses in the market. The Solana blockchain raised funds from FTX
and Alameda Research, the trading firm of FTX former CEO, Sam
Bankman-Fried. However, when Binance withdrew from its planned
takeover of the exchange, it spooked many investors as it meant the
termination of support for Solana. Following the incident, many key
investors pulled out from the Solana blockchain. This action led to
a drastic drop in price, leaving SOL to struggle. However, the
asset started recovering in 2023. It started the year at $9.9610
but gradually climbed, recording rallies and pullbacks until it hit
$25 on January 21 before retracing. The past weeks were
eventful for SOL, as it touched a significant high of $24.7 (April
15). But recently, Solana’s price has also been facing challenges
as the crypto markets portray several signs of fear due to the
threat of economic recession. At the time of writing,
Solana’s price stands at $21.33, indicating a drastic plunge in
price by over 13% in the past week, compared to its past week’s
performance. For instance, on January 10, 2023, Solana enjoyed a
12% price increase after the blockchain’s Shiba-Inu-themed token,
BONK, launched. Related Reading: These Top 5 Cryptos Are Thriving
Despite A Slippery Market If another development or event occurs on
the Solana blockchain, there could be a possible recovery for the
asset. $19.8 Support Critical To Halt SOL’s Downtrend SOL is in a
downtrend today, losing most of its gains in the past week. The
asset has declined to the $21 price level as the bears seize market
control. Solana is trading a bearish signal below its 50-day
Simple Moving Average (SMA). However, it remains above its 200-day
SMA, sparking hope of a long-term revival. SOL’s Relative Strength
Index (RSI) is 44.61, confirming the bearish trend. Notably, the
indicator moves sideways, reflecting trader indecision in today’s
market. SOL’s trading volume is down by over 26% today, thus
halting its price gains. Solana’s support levels are $14.96 and
$19.87. Also, its resistance levels are $23.99, $26.04, $29.79, and
$30. Solana will likely drop below $20 in the short term.
However, the $19.87 support level will prove critical to the asset
and could be the pivot point for an uptrend if the bulls prevail.
Featured image from Pixabay and chart from Tradingview
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