Solana Price Down 6% In A Week As Investors Turn To This L2 ICO

The Solana price is down more than 6% on the weekly time frame following a 1% 24-hour drop to trade at $200.96 as of 10:43 p.m. EST as investors decrease their exposure to the altcoin.

Despite the drop in the SOL price over the last 7 days, the crypto’s positive monthly performance remains intact. The altcoin is over 7% in the green on the longer-term time frame.

Solana Price Trying To Escape A Negative Channel

Daily chart for SOL/USD (Source: GeckoTerminal)

The Solana price is attempting to break out above a medium-term descending channel that has formed on its charts in the last couple of weeks, GeckoTerminal data shows. Should the crypto rise above the upper boundary of this negative range, it might try to flip the resistance at $223.34 before potentially soaring to the resistance at $260.22.

However, failure to escape above the negative channel within the next 8 hours could invalidate the bullish thesis. In this more bearish scenario, the Solana price might continue to trade within the negative channel. This could lead to a test of the immediate support at $194.53. Continued sell pressure might even lead to a drop to as low as $162.27.

Solana Price Could Start To Rally If Bulls Step In Soon

From a technical standpoint, it seems the Solana price is on the verge of entering into a rally. The Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators on the daily chart are showing early bullish signs.

Over the last couple of hours, the MACD line has started to rise towards the MACD Signal line. The narrowing gap between these two technical indicators could suggest that SOL’s negative trend is nearing its end. Should the MACD line cross above the MACD Signal line, it might indicate that SOL has entered a new positive cycle. This could then lead to a rally.

Meanwhile, the RSI line on the daily chart has started to level off at around 43. The current reading below the neutral 50 mark might indicate that bears currently have the upper hand. However, the leveling off of the technical indicator has opened up the possibility for bulls to step in and take back control of the Solana price if they choose to capitalize on the opportunity.

As the Solana price tries to break out of a negative channel, investors flock to the presale for new SOL layer-2 meme coin Solaxy (SOLX), which is charging towards the $20 million milestone. 99Bitcoins, a popular crypto channel on YouTube with over 724K subscribers, believes SOLX could surge 100X after its launch.

Elevating The Solana Blockchain To The Next Level

Solana has come under immense computational stress due to the ongoing hype around SOL-based meme coins. As new tokens enter the Solana ecosystem on a daily basis, the layer-1 mainnet faces the growing risk of another outage. 

What’s more, talks of a 2025 meme coin supercycle are making the rounds in the market. Should this anticipated event happen, the increased traffic could lead to a massive backlog on the Solana chain.

This is where Solaxy, the first layer-2 project focused on Solana, comes in. Through its native sidechain and layer-2 scaling technology, the project aims to provide Solana with the computational resources needed to cope with the constant influx of new tokens.

Solaxy will increase Solana’s transaction throughput by processing transactions off of the mainnet, bundling them together, and then sending them back to the layer-1 for final validation and record keeping. In addition to increasing Solana’s transaction throughput, this approach will also increase Solana’s network speeds as well as slash the blockchain’s already-low fees.

Solaxy will also try to bridge the Solana and Ethereum networks to create a new Web3 infrastructure that is capable of meeting the growing needs of decentralized application and meme coin developers.

Solaxy Raises Over $19.5 Million In Ongoing Presale

Investors are betting big on SOLX’s future, which is evident by the more than $19.5 million in early-stage funding the project has raised so far. With the bullish predictions from experts like 99Bitcoins and the project’s mission to scale Solana, it’s easy to see why there is a buying frenzy around the crypto at this early stage.

To get in on the ground level of the project, investors can buy SOLX using the simple widget embedded on the project’s website. Selling for $0.00163, the altcoin can be purchased with either crypto or bank card. After acquiring SOLX, investors can also stake their tokens for a 210% APY on offer to anyone who locks up SOLX during this ICO phase.

Buy SOLX here before a presale price hike in 3 hours to lock in the best deal.

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