Solana price could potentially collapse by 20% as Ethereum stabilizes above key support level
Solana’s price has rebounded 14% from the recent peak of $295, reaching $255 on Saturday. Key market indicators suggest that SOL could see further scaling back as Ethereum gradually returns after Vitalik Buterin announced the team’s intention to stop selling ETH.
With SOL recently struggling to maintain momentum as selling pressure builds, Ethereum (ETH) has settled above the $3,100-$3,300 support zone. The contrasting price action highlights the growing divergence between major tier-1 competitors, as Ethereum appears poised to regain market dominance.
Solana price weakens as Ethereum stabilizes
Solana (SOL) continues to show bearish price action as the stability of Ethereum (ETH) amid volatile market trends indicates that traders are selectively navigating the markets.
By analyzing the Ethereum price forecast chart, Ethereum price is consolidating above the major support area between $3,050 and $3,208.
This support is reinforced by the 200-day moving average (MA), which is an important technical indicator for measuring long-term trends.
According to TradingView In the chart above, the Relative Strength Index (RSI) for ETH is hovering near 47.57, indicating neutral momentum and accumulation potential. Meanwhile, the MACD histogram shows moderate bearish divergence but indicates weak downward pressure, with the recent bars narrowing towards the zero line.
These factors point to a stabilization of the ETH price, creating a weak environment for pegged altcoins like Solana.
In contrast, SOL lacks the strong institutional interest evident in Ethereum’s support areas.
With ETH finding buyers near the 200-day moving average and key horizontal levels, SOL price weakness could signal a flight to safety towards larger-cap assets. If Ethereum continues to consolidate above $3,200, it may exert indirect resistance on SOL, limiting its ability to recover in the short term. Solana bulls must reclaim lost support areas to turn sentiment to the upside.
Solana Price Forecast: SOL collapses by 20% as selling pressure increases
Looking at Solana’s near-term price outlook, current market dynamics point to a bearish outlook, with a potential 20% decline as selling pressures intensify.
As shown in the chart below, SOL price recently broke through key support levels, including the 50-day simple moving average (SMA) at $232.51 and the 200-day SMA at $168.88, indicating Weak demand.
A swing failure pattern (SFP) due to overselling emphasizes a downtrend, as buyers fail to maintain upward momentum, leading to a breakout.
The price is currently testing the midpoint of the range at $232.51, which is now acting as resistance.
The Relative Strength Index (RSI) and other momentum indicators are likely in oversold territory, but without significant buying interest, a recovery seems unlikely. The demand zone around the $168.88 area, which is in line with the 200-day simple moving average, is the next crucial support level. If this level fails to hold, SOL price could quickly fall towards $169.00, in line with expectations of a 20% breakdown.
Frequently Asked Questions (FAQ)
Solana price is declining due to excessive selling pressure, breakout of key support levels such as the 50-day and 200-day simple moving averages, and a swing failure pattern indicating weak buyer momentum.
Ethereum’s stability above key support areas contrasts with Solana’s weakness, indicating a potential shift in trader preference towards larger-cap assets like Ethereum, which could increase pressure on Solana.
Key support levels for Solana include the 50-day simple moving average at $232 and the 200-day simple moving average at $168. A break below these levels could lead to further downside.
Ibrahim
Disclaimer: The provided content may include the personal opinion of the author and is subject to the market situation. Conduct market research before investing in cryptocurrencies. The author or publication does not accept any responsibility for your personal financial loss.
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