Solana Price Dips 16% As Investors Turn To This SOL Layer-2 Coin

The Solana price plummeted 16% in the last week and 7% in the past 24 hours to trade at $197.44 as of 11:18 p.m. EST on trading volume that skyrocketed 194% to $14 billion.

This drop in the SOL price comes as the crypto space plunged 11% in the last 24 hours to a $3.1 trillion market capitalization, with Bitcoin and Ethereum plunging 7% and 20%, respectively, according to Coingecko data.

Solana Price On A Bearish Trend

The SOL price chart analysis on the 4-hour timeframe shows a significant breakdown from a falling wedge pattern that had been forming over the past few days. 

This pattern initially suggested the potential for a breakout in either direction, but the market chose the downside, confirming a bearish resolution.

The breakdown was swift and decisive, with the Solana price plunging from the $220 level to a low near $176 before recovering slightly to the current price of $197.44, according to GeckoTerminal data. The steep sell-off was accompanied by a sharp increase in trading volume, indicating strong bearish momentum.

Additionally, the breakdown also pushed SOL below the 200-period Simple Moving Average (SMA) on the 4-hour chart at $221.11, which had been acting as a dynamic support level. This confirms a shift in market sentiment from bullish to bearish.

Meanwhile, the 50-period SMA at $230.95 has started sloping downward, reflecting short-term weakness.

The Relative Strength Index (RSI) is currently at 26.05, which is in oversold territory (<30). This indicates that the recent sell-off was extreme, and a short-term bounce could be expected. However, in strong downtrends, oversold conditions can persist for an extended period.

Can The Solana Price Recover?

If SOL fails to reclaim the $221 – $230 resistance zone (previous support levels and key moving averages), it could continue its downtrend. A further decline towards $180 and potentially $160 could be seen, especially if selling pressure persists.

However, given the oversold RSI, a relief bounce is possible. If SOL can reclaim $221-$230, it might attempt to recover to around $250-$260.

Meanwhile, investors are buying into a new layer-2 Solana meme coin called Solaxy (SOLX). According to 99Bitcoins, a popular crypto YouTube channel with over 724K subscribers, Solaxy has the potential to soar 100X post-launch.

Solaxy Presale Garners Over $17.6 Million – Best Solana Alternative?

Over the years, Solana has struggled with too many transactions, causing slow speeds and failed transactions. Solaxy, the first layer-2 solution on Solana, is designed to fix these problems and improve performance.

Instead of processing each transaction individually, Solaxy groups multiple transactions together and processes them in batches. This results in the consumption of fewer resources, resulting in faster outputs.

🚨 Solaxy is now live in Upcoming Tokens! 🚨@SOLAXYTOKEN gives holders an opportunity to join the first-ever Solana Layer 2 blockchain.

Solaxy is set to enhance blockchain innovation through limiting congestion, reducing failed transactions, and improving scalability on SOL.… pic.twitter.com/satNF6zFNF

— Best Wallet (@BestWalletHQ) December 17, 2024

Another massive utility of Solaxy is that it offers the best of both Ethereum and Solana. SOLX merges the benefits of Ethereum’s liquidity and growing decentralized finance ecosystem with Solana’s efficiency and speeds, thereby connecting the two most prominent crypto ecosystems in the Web3 space.

The Solaxy presale is closing in on the $18 million mark in a little over one month. Investors interested in participating in the presale can visit the official Solaxy website to buy SOLX tokens for $0.001624 each using BNB, ETH, USDT, or a bank card. The project’s staking program also offers token holders a huge 229% APY.

Buy SOLX here before a price hike in 44 hours to secure the best deal.

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