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- 1 Solana price crashed below the $130 level, breaking the dynamic support of 200 day EMA.
- 2 The recent fall in the broader market has triggered a panic among the short term Investors.
- 3 Solana has crashed over 39% from its recent high of $208 formed in March 2024.
Solana price has crashed below the psychological $130 level and the weakness in the broader markets have triggered a panic among the short term traders and investors. The price has slumped, breaking the 200 day exponential moving average thus shifting the long term trend into bearish territory.
At the time of writing, SOL was exchanging hands at $126.3, recording a negative intraday development of 1.73%. The price currently hovers near the annual lows which may break if the panic selling resumes.
Transaction Volume Grows, Despite Fall in Price!
Recently, Solana crashed after failing to gain ground near the psychological $150 level. The strong selling pressure dragged the price near the annual lows of $130. The SOL price is down over 23.7% as of now this month and is at the risk of falling towards the $100 demand zone.
Moreover, the volume analysis shows that the intraday transaction volume has surged by over 207.21% to $2.24 Billion a day. Correlating it with the price, it was observed that the transaction volume has constantly been increasing as the price resumed its fall below the $150 level.
It points to the rising participation of the sellers which may result in a continued selloff. The volume to market cap is low at 3.80% indicating low volatility. Solana ranked 5th in the cryptoverse with a live market capitalization of $58.487 Billion.
Can Solana Crash Towards $100!
Solana is under strong selling pressure and break below the annual support $125. Now, If the bulls fail to establish their presence near the $125 level, then the panic selling may resume towards the $100 level.
From a technical point of view, the price has slipped below the all the key exponential moving average of 20, 50 and 200 days indicating a bearish reversal in the long term as well as short term.
At the time of writing, the RSI line was placed near $30.32 points and that of the SMA line was placed near $36.61. Both the lines were hovering below the mean line indicating weakness over the charts. Moreover, a bearish crossover was observed on the charts indicating a trend continuation.
Conclusion
Solana price has plummeted below $130, signaling a shift to a bearish trend as it broke the 200-day exponential moving average. Moreover, the intraday trading volume spiked by over 207% to $2.24 Billion, aligning with a price drop below $150 and suggesting increased seller activity. Despite low volatility indicated by a 3.80% volume-to-market cap ratio the crypto has been under a strong selling pressure.
SOL has fallen near an annual low of $125. If the support at $125 fails, SOL may tumble towards $100. Technical indicators show a bearish reversal, with RSI and SMA lines below their mean, hinting at ongoing weakness and potential trend continuation.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
