Solana, the second-largest altcoin, showed a significant price dip in the last 24 hours.
The token’s daily trading volume increased by 23.48% according to CMC data.
In the cryptocurrency sector, volatility in prices is a daily occurrence. Despite that, significant movements in charts often tend to draw investors’ attention. Relatedly, the second largest altcoin, Solana, showed such price movements. The token has seen a price drop of 4.54% in the last 24 hours.
Solana, the native token of the Solana blockchain is prominent especially for its memecoin frenzy. Additionally, SOL, though stands as the fifth largest in market cap, holds huge community support following leading cryptocurrencies Bitcoin and Ethereum. In the past few weeks, the altcoin has shown interesting price movements.
According to CMC data, Solana’s price remained at a high of $156.49 in the Asian afternoon hours of August 27. However, as the day progressed SOL took a bearish turn and prices slid to the previous resistance levels much to traders’ dismay. Additionally, the token hit an intra-day low of $143.32. At the time of writing, Solana was trading at $147.11.
SOL/USDT Daily Price Chart (Source: TradingView )
Secondly, inferring the token’s daily price chart, shows that its short-term 9-day MA still stands above the long-term 21-day MA. This indicates Solana’s overall bullish trend, despite the one-day bearish takeover. Meanwhile, the recent bearish turn has seen SOL experiencing selling pressures once again after inching toward a neutral market sentiment. The token’s RSI stands at 47.02 as per TradingView reports.
What Instigated the Current Solana Price Dip?
In the last 24 hours, several cryptocurrencies including Solana have shown price dips. Notably, Bitcoin, after hitting $65K flipped down to $59K as per different sources. This bearish turn in the largest cryptocurrency was also reflected in the altcoin sector for altcoins such as Ethereum and Solana.
Moreover, Solana’s prices declined as aforementioned after a bullish weekly price rally. When zooming out, in the last 7 days, SOL shows a price performance of 3.93% increase. At the beginning of the week, the token was trading at a low of $139. However, in the coming days, it showed price breakouts that propelled prices to a two-week high of $162.
Finally, if the token’s current dip is brief then analysts expect Solana to reach new highs. On the other hand, in the case of a prolonged bearish trend, Solana might slide below $140.
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