Solana, a top-10 cryptocurrency, is trading at $132.19, marking a 1.3% increase over the last 24 hours. Despite this rise, the price stands significantly below the all-time high of $200 reached in November 2021. This article examines the current parameters and the future prospects of Solana.
Current Price and Dynamics
Solana's price, which began September with a 9-day decline, is currently under significant pressure. The recent pullback from the broken ascending trendline near $139.80 led to a 5.3% drop in just two days, to the current $132.19. If the resistance around the 50-day moving average at $141.43 continues to apply pressure, the price may drop another 9% to the key support level at $120.91.
Solana Technical Indicators
Technical indicators fuel the pessimistic sentiment. The RSI (Relative Strength Index) and Awesome Oscillator are both below their neutral levels, indicating increased selling pressure. Coinglass's analysis also reinforces the bearish trend with a long/short ratio of 0.88, showing a predominance of bets on SOL's decline.
Developer Activity and Prospects
Activity on the Solana network is also concerning. According to Santiment data, the SOL development activity index has dropped from 176.95 to 166 in two days. This decline since early September suggests a loss of confidence in Solana's blockchain ecosystem. Less development activity implies fewer concrete projects, directly impacting investor confidence, already weakened by the unfavorable technical outlook.
While current price parameters and activity indicate a challenging situation for Solana, there remains hope for potential growth. If Solana can close above $141.43, the bearish scenario could be negated, and the price could reach new highs, possibly up to $149.30. However, for fans of this cryptocurrency, caution remains the watchword.
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