Solana maintains $180 as crypto sell-off cools
As crypto markets sold down on Friday, Solana maintained its poor weekly performance.
SOL fell when altcoin markets fell after a US judge allowed the Department of Justice to auction $6.5 billion in Silk Road Bitcoin.
As liquidations accelerated, Solana's price fell 15.7% between January 5 and Thursday.
After hitting a major support level over $180 on Thursday, buyers seem to have stopped any losses.
Solana's stability above $180 suggests a local bottom.
While investors wait for the next positive breakout trigger, SOL prices may consolidate between $180 and $200.
Solana's recent network upgrade plan faces substantial negative risks, argues Zeta Markets founder.
Solana's community is discussing its newest lattice-based hashing proposal.
Solana is scaling its ecosystem to increase acceptance, therefore this upgrade attempts to improve network performance.
DeFi scaling on Solana requires these characteristics to allow low-cost transactions and off-chain calculations while ensuring security and decentralization.
Zeta Markets founder Tristan Frizza discussed this update's pros and cons in an exclusive FXStreet interview.
Solana (SOL) consolidates between $180 and $200, showing market hesitation and bearish triggers.
The daily chart shows a 15.7% drop from its January 5 high of $223, stabilizing at the 0.382 Fibonacci retracement level at $180.
However, resistance at $200 and the 0.5 Fibonacci level create a tight channel that might stop weak breakouts.
According to the Gann Box on the daily chart, SOL's rejection from 0.5 ($200) implies market weakness.
Despite the continuous sell-off, the Gann Box's 0.382 level provided support at $180, highlighting its relevance.
SOL fluctuates between equilibrium values, as seen by the Gann Box.
A positive breakthrough over $200 might lead to a retest of 0.618 near $220, signifying continued higher momentum.
SOL must maintain larger trade volumes, which have dropped due to market skepticism, for this scenario to occur.
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