The cryptocurrency market has been getting a lot of attention lately, with the value of Bitcoin and other top currencies skyrocketing. This is causing a lot of people to want to jump on the bandwagon, but not everyone is as successful as they’d like to be. One company that’s had some trouble recently is Solana Coin.
The why is solana dropping is a question that has been asked several times recently. Solana, the company behind the popular cryptocurrency, has been having a lot of issues in recent months. The company’s CEO, Michael Oved, announced this week that he would be stepping down from his position and returning to the company as an advisor.
Solana is a decentralized blockchain with great throughput and scalability.
It has now established itself as a serious rival to Ethereum and the BSC.
SOL—the local currency, on the other hand, is exploring new ground, defying gravity, and “decoupling” from Bitcoin.
Performance and Status of the Solana Market
The broader crypto community had no cause to dump the currency on September 7 for some inexplicable reasons.
Instead, there was volatility, as shown by the broad range of price movement. SOL prices rebounded in the late New York session, closing higher.
As a result, SOL has remained stable this week, with just a little drop in the early Asian session.
Prices may retrace if SOL continues to trend at all-time highs and encounters resistance around key Fibonacci extension levels of approximately 2.618—near $150.
The general trepidation in the crypto market, as well as the return to prudence following August’s “partying,” may trigger a small sell-off, restoring the positive correlation.
In such scenario, aggressive traders may be able to profit from the upswing by fading it. They may dump on pullbacks and tilt the downtrend as a consequence.
This may be confirmed on a technical level if the price drops below the 20-day moving average. In such scenario, SOL prices may fall even more as gravity attempts to bring the market back into balance.
As a result, aggressive SOL traders should keep an eye on how prices respond at the high-low of the bull bar on September 7.
In a state of FOMO, you’re on your own.
SOL, according to one trader on Trading View, is in a condition of FOMO, similar to where other hype coins like MATIC and DOGE were in early Q2 2021.
As previously said, the swing low of September 7 is the immediate objective for sellers hoping to profit from the drop. As a result, the analyst anticipates a longer-term fall of SOL prices down to $130.
The lower correction would bring SOL and ETH/BTC back into line. After the September 7 adjustment, these layer-1 coins are now in deep red.
SOL is robust at spot rates, but it is seeing headwinds that may halt the rise.
Solana “Requires a Break”
Another trader believes it is past time for SOL to take a break.
The analyst thinks this is typical and that it will allow SOL time to establish a strong, robust foundation in preparation for another wave higher to $250.
In the daily chart, there may be an overvaluation. There’s a chance of a wave down in a strong retreat as a result of this.
According to the trader, SOL may drop as low as $75, reducing spot rates.
This zone is identified by the analyst as a support zone where the coin may rebound to $250 without disrupting the development of the rising bull channel.
The Impulsive Wave Up is completed by SOL.
Meanwhile, another trader notices that the SOL coin has completed the Elliot wave pattern of 1-2-3-4-5.
The sixth wave upward was the climactic surge to $150, which doubled in less than two weeks.
As a result, the analyst believes SOL prices will revert to $40 in a sharp drop.
Trading View provided the charts.
Disclaimer: The views presented do not constitute investment advice. Do your homework.
Solana is a cryptocurrency that was created in 2017. It had a peak of $75 before falling to $6. The company has posted on Twitter saying they need to rest after the FOMO run up, but it is unclear if they are going back to their old price or not. Reference: what is solana.
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