Solana Price Plunges into Bear Market Amid Looming Death Cross
The Solana (SOL) token has experienced a significant decline, falling over 35% from its September peak, and is now trading at $160, its lowest level since August. Despite surging ETF inflows, the Solana price is expected to continue its downward trend due to a looming death cross pattern on the daily chart. This bearish indicator, combined with an inverted cup and handle pattern, suggests further downside for the token.
According to data from SoSoValue, demand for Solana from American investors is increasing, with $12.6 million in inflows recorded on Friday, bringing the total to $337 million. The combined assets of Solana ETFs, including Bitwise’s BSOL and Grayscale’s GSOL, now equal 0.64% of its market capitalization. However, the Solana price has declined despite these inflows, likely due to the overall weakness in the crypto industry, with Bitcoin (BTC) and most altcoins remaining jittery in recent weeks amid concerns about the Federal Reserve’s next actions.
Technical Analysis Suggests Further Weakness
The technicals for Solana suggest that the token will remain under pressure before eventually recovering. The formation of a death cross pattern, which occurs when the 50-day and 200-day moving averages cross, is a riskier pattern in technical analysis. Additionally, the coin has formed the handle portion of the reverse cup-handle pattern and has also formed a bearish pennant, remaining below the supertrend indicator. These indicators suggest that the Solana token may continue to fall, with traders targeting key support at $126, the June low, which is about 20% below current levels.
Despite the bearish outlook, Solana has some solid fundamentals that could help it rebound later this year. The Alpenglow upgrade, which is imminent, will introduce Sub-Second, an increase in throughput, reductions in validator costs, and a new consensus mechanism. Furthermore, the rising ETF inflows and the waiver of fees by Grayscale could contribute to a potential recovery. However, for now, the technical analysis suggests that the Solana price will remain under pressure.
It’s essential to note that the crypto market is highly volatile, and prices can fluctuate rapidly. Other tokens, such as top privacy tokens like Zcash, Dash, and Monero, as well as AI tokens like Near, Filecoin, and FET, have led the gains in the crypto market, outperforming Solana. As the market continues to evolve, it’s crucial to stay informed and adapt to the changing landscape.
For more information on the Solana price and its potential movements, visit https://crypto.news/solana-price-patterns-point-to-a-20-crash-as-sol-etf-inflows-soar/
Disclosure: This article does not constitute investment advice. The content and materials presented on this site are for educational purposes only.
