As other altcoins shine, Solana is lagging, giving the 'bears' the upper hand. If bulls act quickly, the situation could reverse—but timing is everything.
The resilience of Solana [SOL] bulls is being severely tested. Despite attempting to break free from the downward trend three times in less than a month, the stock price continues to struggle and decline further.
From the daily chart, it is clear how greatly the 'Trump Surge' has impacted investors, with Solana's price reaching a historical high of $264 after three years of stagnation.
After such a strong rebound, one might expect long-term HODLers to cash out their SOL holdings, but surprisingly, this has not been the case.
In contrast, the steadfast faith of these long-term investors has sparked speculation about an impending economic rebound.
However, with SOL having erased most of its post-election gains, the threat of further pullbacks looms large. Even the most steadfast HODLers may soon feel the pressure.
The pressure from this downward trend may force decisions, which could just be a matter of time.
The clock is ticking.
From this chart, the winners of the election cycle are clear, as indicated by the percentage change over 30 days.
Just a week after the results were announced, the market experienced a wave of excitement, driving some assets to significant gains.
Ripple [XRP] stands out as the big winner, surging to a key psychological level with a three-digit increase. Even more impressively, it has surpassed Solana to become the fourth largest cryptocurrency by market capitalization.
Clearly, Solana has fallen behind its competitors, but that doesn't mean all hope is lost.
Speculation about a large-scale rebound is increasing, with some predicting that SOL could reach a target price of $500 before the end of the first quarter of next year.
Considering Solana's price trend, particularly over the past three weeks, viewing a target of $500 as somewhat exaggerated is understandable.
However, we cannot overlook the fact that Solana's volatility has historically paved the way for some substantial gains. While it's still too early to make any definitive predictions, it is clear that anything is possible.
The downward trend of Solana has ended.
As the asset attempts to regain bullish momentum, Solana is at a critical crossroads. Following a strong rebound, SOL surged from $150 to nearly $260, and the asset is currently facing seller pressure and imminent supply issues.
Solana is currently trading at $222.78, with a 50 EMA of $216 providing immediate support. So far, this level has remained stable, avoiding a more severe collapse. However, a major obstacle for the bulls remains the downward trendline resistance around $230. Breaking this level could signal the start of a recovery and pave the way for a test of $250. If SOL cannot maintain the current support level, the next downward target is around $194, near the 200 EMA.
Dropping to this level would confirm ongoing pessimism, likely triggered by concerns surrounding the March token unlock event, seen as a bearish catalyst. The $2.63 billion unlock event scheduled for March 1 has affected investor confidence.
In the past month, SOL has underperformed amid concerns of oversupply, with 11.2 million SOL (2.35% of circulating supply) expected to enter the market. Although Chris Burniske and other analysts believe the market has digested this event, vigilance remains. Bulls must reclaim $230 and maintain above this level for Solana to rebound. If successful, SOL could target $250-$260 in the near future. However, if the 50 EMA support level is not maintained, it could fall to the $194-$200 range.
As other altcoins shine, Solana is lagging, giving the 'bears' the upper hand. If bulls act quickly, the situation could reverse—but timing is everything.
The resilience of Solana [SOL] bulls is being severely tested. Despite attempting to break free from the downward trend three times in less than a month, the stock price continues to struggle and decline further.
From the daily chart, it is clear how greatly the 'Trump Surge' has impacted investors, with Solana's price reaching a historical high of $264 after three years of stagnation.
After such a strong rebound, one might expect long-term HODLers to cash out their SOL holdings, but surprisingly, this has not been the case.
In contrast, the steadfast faith of these long-term investors has sparked speculation about an impending economic rebound.
However, with SOL having erased most of its post-election gains, the threat of further pullbacks looms large. Even the most steadfast HODLers may soon feel the pressure.
The pressure from this downward trend may force decisions, which could just be a matter of time.
The clock is ticking.
From this chart, the winners of the election cycle are clear, as indicated by the percentage change over 30 days.
Just a week after the results were announced, the market experienced a wave of excitement, driving some assets to significant gains.
Ripple [XRP] stands out as the big winner, surging to a key psychological level with a three-digit increase. Even more impressively, it has surpassed Solana to become the fourth largest cryptocurrency by market capitalization.
Clearly, Solana has fallen behind its competitors, but that doesn't mean all hope is lost.
Speculation about a large-scale rebound is increasing, with some predicting that SOL could reach a target price of $500 before the end of the first quarter of next year.
Considering Solana's price trend, particularly over the past three weeks, viewing a target of $500 as somewhat exaggerated is understandable.
However, we cannot overlook the fact that Solana's volatility has historically paved the way for some substantial gains. While it's still too early to make any definitive predictions, it is clear that anything is possible.
The downward trend of Solana has ended.
As the asset attempts to regain bullish momentum, Solana is at a critical crossroads. Following a strong rebound, SOL surged from $150 to nearly $260, and the asset is currently facing seller pressure and imminent supply issues.
Solana is currently trading at $222.78, with a 50 EMA of $216 providing immediate support. So far, this level has remained stable, avoiding a more severe collapse. However, a major obstacle for the bulls remains the downward trendline resistance around $230. Breaking this level could signal the start of a recovery and pave the way for a test of $250. If SOL cannot maintain the current support level, the next downward target is around $194, near the 200 EMA.
Dropping to this level would confirm ongoing pessimism, likely triggered by concerns surrounding the March token unlock event, seen as a bearish catalyst. The $2.63 billion unlock event scheduled for March 1 has affected investor confidence.
In the past month, SOL has underperformed amid concerns of oversupply, with 11.2 million SOL (2.35% of circulating supply) expected to enter the market. Although Chris Burniske and other analysts believe the market has digested this event, vigilance remains. Bulls must reclaim $230 and maintain above this level for Solana to rebound. If successful, SOL could target $250-$260 in the near future. However, if the 50 EMA support level is not maintained, it could fall to the $194-$200 range.