Solana’s The recent price movements in July are as follows: This is a very impressive new high achieved after a long time.And it’s getting closer to $200. Surpassing BNB to Reach 4th Place in Market Cap. but, Since August, Bitcoin and other altcoins have been plummeting in price.Solana has been the most interesting since it recently reached its all-time high. Therefore, for those who are investing or considering investing in Solana, it is important to understand the factors behind this SOL price crash. In this article, we explore the reasons for the Solana price drop, analyze the current market sentiment, and provide insight into what is What does the future hold for this popular cryptocurrency?.
Solana Down More Than 10%: Why Did SOL Price Crash?
On August 1, 2024, Solana price experienced a dramatic price drop of over 10%, trading at $150. Several factors contributed to this significant decline.
- Concerns about centralization: Despite its reputation for speed and efficiency, Solana has been criticized for its high degree of centralization. This centralization leaves the network vulnerable to attacks and outages, which affects investor confidence.
- Reduce DApp usage: Decentralized applications (DApps) are essential to the Solana ecosystem, driving user activity and network engagement. A decrease in DApp usage indicates a potential loss of interest or trust, which contributes to a price drop.
- Decreased interest from derivatives traders: Derivatives such as futures and options are commonly used by traders to speculate on price movements. The decreased interest in these instruments suggests that traders may be expecting further declines in Solana’s price.
- Technical resistance: SOL was rejected several times near $190. These failed attempts to break the resistance line led to the contraction of the Bollinger Bands and the subsequent decline below the average price level.
Solana’s Price Performance and Market Sentiment
The current SOL price is trading near $150 and has had a downward momentum of more than 8% in the last 24 hours. The open interest (OI) of SOL has also fallen by more than 8%, indicating fear and decreased interest among traders and investors. This sentiment has led to significant liquidations.
- Liquidation Overview: Over the past 24 hours, traders have liquidated over $22.44 million worth of long and short positions, with long positions accounting for the majority of these liquidations as the market has fallen.
Solana Price Breaks Support Level
On August 3, 2024, Solana (SOL) witnessed another significant decline of over 8% in 24 hours, breaking through the important support level of $157. This decline has caused market sentiment to turn bearish, and SOL is heading towards $125. There are several factors at play here.
- Support Level Analysis: The downtrend intensified as the $157 support level was broken, pushing SOL lower.
- Impact of major cryptocurrencies: The negative performance of major assets such as Bitcoin (BTC) and Ethereum (ETH) also contributed to the SOL price crash.
Solana Price Prediction
Despite the massive liquidation, the next important levels for the SOL price are the lower limit of $146 and the upper limit of $162. Market sentiment will play a major role in determining whether SOL will continue to decline or recover. Technical analysis provides additional insight.
- Bearish signal: According to expert technical analysis, there is a possibility that SOL will fall below the 4-hour key support level and the 200 exponential moving average (EMA), which could lead to a downtrend.
- Potential support levels: Looking at historical data and price momentum, SOL could reach the $143 and $125 levels in the coming days, which are expected to act as support levels.
What’s next for Solana?
The recent Solana price decline may be due to concerns about centralization, declining DApp usage, declining interest from derivatives traders, and technical resistance levels. The violation of key support levels and bearish market sentiment further exacerbate the situation. However, technical improvements and a return to investor interest could potentially reverse this trend. Investors should closely monitor these trends and market sentiment to make informed decisions.