Hello cryptocurrency traders, prepare for a Solana crash. It’s becoming a hot topic these days, but not for the exact reason! Latest scoop? After a rough ride that started two months ago when SOL’s ticker called $30 until it reached $126.50, it decided to take a detour, saying goodbye to $99. Someone must have told Solana that it was time to take a break. And boy, did you listen!
Now, don’t take us too seriously. This is just Solana stretching its cryptocurrency legs after the December sprint and the Memecoin craze that impressed even the fast and furious Ethereum. You know what happens in the cryptocurrency world, right? One day you’re a star, the next you’re sitting in the backseat of a fancy Ethereum ticker performing its own moonwalk.
Solana declines due to overbought
Our favorite coin, SOL, joined the “overbought club” in December and its daily RSI is flashing the “overbought” sign as if it were the hottest ticket in town. Talk about popularity! Sensing an opportunity for a cryptocurrency nap, traders decided it was time to cash in on those profits. Even major players in the SOL game made cameo appearances and sold off their holdings as if it were a cryptocurrency garage sale. In the image below, you can see that once the RSI level is above 80, a slight decline is usually expected.
You can buy/sell/trade $SOL on Bybit or OKX.
TVL indicator
And what do we hear? Solana’s TVL (Total Value Lock for Dummies) fell by 2 million SOL (about $200 million). It’s as if someone accidentally dropped their cryptocurrency keys on the sofa cushion. this! You can check it out at DeFi Lama.
Ethereum
But let’s not forget comedy duo SOL and its rival Ethereum. While SOL was catching its breath, ETH did a victory dance with a 12.35% gain while the SOL/ETH pair shuffled awkwardly with a 23.75% decline. It’s like a dance-off where one partner suddenly decides to do the cha-cha and the other partner decides to do the moonwalk. Cryptocurrency style!
Solana Transactions
Now let’s talk about serious business: technology. SOL/USD is feeling so loved that some chart analysts have even suggested a cryptocurrency spa day for January. The bears want to close the door on SOL below $100 and set the stage for a potentially dramatic decline. $68.5 level But don’t rule out an uptick just yet. They are targeting a nice close above $130 and could possibly spin off SOL to $150 by February. It’s like a cryptocurrency romantic comedy. Shall we break up or reconcile?
My personal trading orders are between 88-90$ and have a relatively strict stop loss. For Maham, my bulk orders are in the low 70s. Needless to say, there is no financial advice or anything like that.
final thoughts
So fellow cryptocurrency adventurers, buckle up and enjoy the Solana roller coaster. After all, what’s cryptocurrency without a few twists and turns and a little drama? Nothing goes up in a straight line, right?
If you are bullish on Solana in general, you can get $Sol airdrops while you wait for the price to recover.
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You might also like our latest content on Injective ($INJ) and Trading Fundamentals.
