Solana (SOL) experienced a remarkable 67% surge in just 17 days starting on October 10, 2024, drawing significant attention to its bullish rally. The cryptocurrency hit a peak of $263 on November 22, but its price quickly turned sideways, followed by a notable downturn. As Solana’s price dipped to $203 in recent weeks, the community began to question whether this marks the beginning of a downturn for the fifth-largest cryptocurrency, or if it’s merely a temporary shift in momentum.
Solana on a Roller Coaster
Solana’s recent price movements have been a wild ride. After reaching its peak at $263, the coin entered a period of sideways movement, trying multiple times to break its all-time high (ATH). However, each attempt resulted in a rejection, which pushed Solana back into its upward parallel channel. While initially, this channel appeared to be a strong support level, Solana soon fell below it, hitting a low of $203.
This drop drove Solana’s price under its key moving averages, turning them into active resistance. Additionally, the recent “death cross” formation on December 11, visible on the 4-hour chart, has raised concerns among traders. The relative strength index (RSI) currently sits at 43, signaling a lack of momentum. Despite these signals, Solana’s trading volume has increased by nearly 39% over the last 24 hours, indicating that investor interest remains high.
What’s Next for Solana?
Solana’s next big hurdle is to push past the $222 resistance level and challenge its recent high of $263. However, given the current market conditions, this could prove to be a tough battle. Currently priced at $215.32, Solana’s trajectory is being closely watched by investors. With open interest rising by 2.25% to $5.34 billion, there is growing anticipation around Solana’s next move.
New Staking Opportunities for Solana Investors
In an effort to enhance staking rewards for investors, Bitwise recently launched a Solana Staking ETP (BSOL) in Europe, offering a staking reward rate of 6.48%. This surpasses the 5.49% staking rate from competitor 21Shares. While staking products in the U.S. are moving slower, Bitwise has filed for a spot Solana ETF, though approval is still pending.
Also Read: Solana (SOL) Price Eyes $300 as Bitwise Launches Staking ETP with Competitive Rewards
Potential for Growth
Despite Solana’s recent struggles, there remains potential for a price rebound. Analysts suggest that the coin could retest the $203 support level before potentially bouncing back. Although it’s a challenging phase for Solana, there is a chance for it to surprise the market with a sudden rally. Investors will be watching closely as the next key price points approach, particularly the $222 and $263 levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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