Friday, March 29

Red Solana falters and its cryptocurrency falls rapidly in price


As if the general uncertainty in the crypto market were not little, the Solana network caused its cryptocurrency to fall even more than average, due to instability caused by congestion in its blockchain.

At the time of writing, SOL is trading at $94.21, accumulating a 2.5% gain in today’s session, but losing 31.75% in the last 7 days.

The price of this cryptocurrency has been breathing slightly higher, as the entire crypto market does as well, and thanks to the development team behind it releasing version 1.8.14 to try to mitigate congestion-related issues. .

In a thread retweeted by Solana’s own co-founder, it is explained that the reason behind the problem in this network is the current volatility of the crypto market.

«Due to the current circumstance of the ecosystem, many leveraged positions in DeFi applications need to be liquidated. As a result, validators compete to settle and get the reward, submitting the request dozens of times to win the race.».

Although the Solana team has already responded to the problem, and hopes to continue releasing new improvements, the price of SOL is in trouble. To find out where this coin is headed, we conducted an analysis below.

Solana cryptocurrency technical analysis

On the daily SOL vs USDT chart we see a very clear short-term downtrend, followed by the 8-day EMA.

Last Sunday, the price of the Solana cryptocurrency made a small respite to the upside, but with the problems related to network congestion, the bears quickly regained control.

Now a new short-term bearish momentum is developing. However, the low price rejection seen yesterday seems to herald a broader respite to the upside.

Even though we are likely to see some more gains in the coming hours, the strong bearish direction should push SOL lower in the near future.

SOL Price Monthly Chart

Despite the short-term negativism, on the Solana cryptocurrency price monthly chart we see that the drop may still be just a necessary pullback.

The long-term bullish parabolic trend is being breached, a fact that we can see when we see how the 8 EMA is being broken. However, there is now the 18 SMA (small red line appearing at $62); This moving average is likely to act as dynamic support should the decline extend.

SOL is approaching the Fibonacci 78.6% ($72), if this level does not function as support then we would see the price falling to 88% ($50).

To think that the bullrun for this coin is over, then we should see lower and lower lows starting to be made on this chart.

Solana cryptocurrency price technical analysis, monthly chart. Fountain: TradingView.

All our publications are of an informative nature, so in no case should they be accepted as investment advice.





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