- Solana Leading the cryptocurrency market crash.
- Bitcoin Monthly Reach low.
- Bear Indicators reveal Selling signal For ~ brush.
Despite promising high returns, altcoins are notorious for their volatility. One of them is Solana, which has seen significant ups and downs in recent years. SOL is currently leading in daily losses after an impressive year-to-date performance, with gains of nearly 600%.
Spurred by the significant decline in Bitcoin price, Solana is showing a worsening trend. Looking at the technical aspect, it can be seen that the market outlook for the token’s near future is not good.
Solana falls along with the cryptocurrency market
Solana, once the leader of the bullish momentum, is now leading the market downtrend. On Thursday, July 4, Solana’s price fell 7.22% to $133.71, which was fueled by the overall decline in the crypto market. This decline is reflected in SOL’s weak technical indicators, which are flashing sell signals.
Solana’s moving averages, which identify trends over multiple time periods, show strong selloffs across multiple time frames. The short-term moving averages reflect recent downtrend momentum and flash selloff signals. The trend continues with the 50-day and 100-day moving averages, which are also bearish. The long-term moving averages are mixed. The 200-day exponential moving average indicates a potential support point for Solana at $131.23.
Oscillators that identify overbought or oversold conditions are neutral. These include the major Relative Strength Index (RSI) at 42.13, which is neither overbought nor oversold. The Stochastic %K and Commodity Channel Index (CCI) are also neutral, while the Momentum indicator and MACD show sell and buy, respectively.
Cryptocurrency Markets Down, Bitcoin Hits Monthly Low
Solana’s technical indicators reflect a broader shift in market sentiment that is turning bearish. In particular, Bitcoin is trading below $58,000 for the first time since February of this year, with a daily decline of 5.8%. The Bitcoin Fear and Greed Index, a key indicator of cryptocurrency market sentiment, is also in fear territory.
The drop is likely due to concerns surrounding the repayment of the shuttered Mt. Gox exchange. After years of bankruptcy proceedings, the exchange is set to begin repaying $9 billion worth of cryptocurrency to former customers, including 140,000 bitcoins, currently worth $8 billion.
In such situations, traders prefer more established currencies like Bitcoin over altcoins, which causes altcoins like Solana to suffer greater losses compared to Bitcoin.
On the other side
- Solana recently received support from investment firm VanEck for its first Solana exchange-traded fund (ETF), a move that lends credence to its claim to be the “big three” of cryptocurrencies, following Bitcoin and Ethereum.
- Solana is increasingly beating Ethereum in terms of DEX volume, and could potentially take the lead on this metric.
Why this matters
Technical indicators are key indicators that measure the market sentiment of any cryptocurrency token. Understanding these indicators is essential for investors to make informed decisions.
Learn more about Mt. Gox concerns for Bitcoin holders:
Bitcoin Plunges Below $59,000 on Mt. Gox Redemption Concerns
Learn more about VanEck’s Solana ETF application:
VanEck’s Solana ETF Hangs on SEC Leadership Change: Sigel