Bitcoin's Decreasing Momentum Leads to Supply Pressure in the Altcoin Market
The downward trend in Bitcoin price has particularly adversely affected the altcoin market, especially coins like Solana (SOL). SOL experienced a 11.3% decline, dropping from $118.5 to $105 within a short period.
Price Dynamics of Solana
This decrease in Solana price can be seen as a temporary pullback in the market. After a successful recovery from the $79 support towards the end of January, Solana caught the attention of buyers, surging by 43% to reach $113. This indicates that the upward trend in Solana could signify sustainable growth and potential for buyers to continue the trend.
Partnership between Solana and Filecoin
The recent partnership between Solana and Filecoin is considered a significant step in blockchain-based decentralized storage solutions. This collaboration enhances Solana's scalability and reliability, while providing data backup and advanced security. By improving access to blockchain history, it empowers users and developers to strengthen digital ecosystems.
Solana may potentially complete the cup and handle formation with continuous purchases, reaching the neck resistance at $124.5. Breaking this resistance level could signal a departure from long-term accumulation for Solana.
