The Solana price plummeted 16% in the last week and 7% in the past 24 hours, as trading volume skyrocketed by 194% to $14 billion.
Current Solana Situation
Solana's 4-hour chart analysis shows a significant breakdown from a falling wedge pattern that confirms a bearish trend. The price dropped from $220 to $176 and then slightly recovered to $197.44. The sell-off was accompanied by a sharp increase in trading volume, indicating strong bearish momentum. The position below the 200-period SMA confirms the shift in market sentiment from bullish to bearish.
Recovery Opportunities
If SOL fails to reclaim the $221-$230 resistance zone, the downtrend might continue. However, given the oversold conditions indicated by RSI, a short-term bounce is possible. If SOL moves back to the $221-$230 range, a recovery towards $250-$260 may be achievable.
Solaxy: New Alternative on Solana
Solaxy, the first layer-2 solution on Solana, aims to improve blockchain performance by batching transactions, thus conserving resources. Solaxy merges Ethereum’s liquidity and DeFi ecosystem with Solana’s efficiency.
Solana remains under pressure, but potential technologies and projects like Solaxy could offer new recovery prospects for cryptocurrency prices.
