Solana’s (SOL) price has experienced considerable volatility over the past year, fueled by memecoin activity and airdrops on its blockchain. However, recent months have seen a sharp decline in this activity, contributing to a loss of momentum for the cryptocurrency.
The next major challenge for Solana is regaining the crucial $140 level, which analysts believe could determine its short-term direction.
Key Resistance at $140 as Bounces Weaken
According to market analyst Dom, Solana must quickly reclaim the $140 level to prevent further losses.
Expressing concerns about Solana’s downward trajectory, Dom remarked,
“Each time over the last five months we have swept the lows here, the bounces have become weaker.”
He further noted that SOL has lost the 200 EMA and has been unable to quickly regain the $140 mark, which keeps him “weary of further downfall.”
Source: X
From a technical perspective, Solana faces two potential outcomes. A bullish scenario would see SOL break above the $142.29 resistance level, triggering a potential rally toward higher price levels. In contrast, the bearish scenario could play out if SOL fails to reclaim this resistance, leading to a drop toward support levels around $120 or lower. With the price currently hovering at $131.58, traders are watching these critical levels closely.
Solana Breakpoint 2024: Community and Industry Leaders Gather
The upcoming Solana Breakpoint 2024 event in Singapore is expected to draw significant attention to the Solana ecosystem. The event, set to run from September 19 to September 21, will bring together crypto leaders, developers, artists, and the broader Solana community. The Solana Foundation has announced that tickets have already sold out, with potential door sales during the event.
Several high-profile sponsors, including Circle Internet Financial Ltd., Galaxy, Star Atlas, Wormhole, and Sanctum, have backed the event. Meme coin project Bonk will also be represented, signaling the continued interest in community-driven projects on Solana’s blockchain. Notably, Circle’s CEO, Jeremy Allaire, is set to present on Friday and has teased some “cool sneaks” for attendees during his talk.
Another major event this week in Singapore, and am excited to deliver a keynote at @solana Breakpoint this Friday afternoon. Some cool sneaks to show… pic.twitter.com/JPzfKxImH7
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) September 16, 2024
In an exciting development, Solana has partnered with ride-hailing company Grab to enable event attendees to pay with USDC and PYUSD stablecoins. This partnership underscores Solana’s growing utility as a platform for real-world use cases in payments and transactions.
Circle’s USDC stablecoin continues to play a central role in the Solana ecosystem. Currently, there are over 2.3 million USDC holders on the Solana network, with a market capitalization of $3 billion. The rapid adoption of USDC has positioned Solana as a leading platform for stablecoin transactions.
Meanwhile, PayPal-backed PYUSD stablecoin has also seen strong growth. PYUSD now boasts a market cap of $383 million, with 5.5k on-chain holders. The increasing presence of these stablecoins on the Solana network highlights its appeal as a high-speed, low-cost platform for digital assets.
Technical Indicators Signal Bearish Momentum
Solana’s price decline over the past week has been met with bearish technical signals. The 50 EMA and 100 EMA are both positioned slightly above the current price, acting as immediate resistance levels that SOL must surpass to regain momentum. The 50 EMA stands at $131.98, while the 100 EMA is at $132.47.
Source: TradingView
Additionally, the Relative Strength Index (RSI) is hovering at 38.07, indicating ongoing bearish pressure. While the RSI has not yet entered oversold territory, the current value suggests that further selling could be ahead unless buyers step in.
The MACD (Moving Average Convergence Divergence) also points to weakening momentum, with the MACD line (-0.11) sitting below the signal line (-0.01), accompanied by a negative histogram.
As of the time of writing, SOL is valued at $131.58, with a 24-hour trading volume of $1.85 billion and a market capitalization of $61.7 billion, according to Coingecko. The price has declined 0.48% in the last 24 hours and 2.59% over the past seven days.
Traders are keeping a close eye on the upcoming Solana Breakpoint event and technical indicators as they anticipate the next move in Solana’s price action.
The post Solana (SOL) Price Prediction September 17: Solana Faces Key Test at $140: Will It Break Out or Fall to $120? appeared first on Coinfomania.
