tl;dr
Solana has experienced a significant decrease, reaching a multi-month low due to overall market weakness. The altcoin's downward trend, coupled with recent technical indicators, has created uncertainty regarding its recovery. The future price movement of Solana is heavily reliant on Bitcoin's perfor...
Solana has experienced a significant decrease, reaching a multi-month low due to overall market weakness. The altcoin's downward trend, coupled with recent technical indicators, has created uncertainty regarding its recovery. The future price movement of Solana is heavily reliant on Bitcoin's performance, as a potential rebound in BTC could aid SOL's turnaround.
However, Solana's Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) has entered the Fear zone, indicating heightened market distress and potential selling pressure. Solana has a strong correlation with Bitcoin, currently at 0.92, which, despite usually signaling a bullish alignment, in this case, is a bearish indicator.
Solana's price has dropped by 28% in the past 24 hours, trading at $128, largely influenced by the broader market bearishness and a recent Death Cross formation on SOL's chart. The altcoin's stability and potential recovery hinge on market sentiment and Bitcoin's trajectory.
Solana’s Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) has entered the Fear zone, signaling increased market distress. As long-term holders experience rising losses, the potential for significant selling pressure increases, posing a risk of further declines.
Solana maintains a strong correlation with Bitcoin, currently at 0.92. While high correlation typically signals bullish alignment, in SOL’s case, it is a bearish indicator. Bitcoin is struggling to hold above $80,000, meaning any further BTC weakness could pull Solana down alongside it.
Solana’s price has dropped 28% in the past 24 hours, trading at $128. The decline stems from overall market bearishness and the Death Cross formation on SOL’s chart last week. Currently, SOL is holding above $120, attempting to stabilize. However, if broader market conditions do not improve, the altcoin risks breaking below its key support at $128.
On the other hand, if investors take advantage of the lower price and accumulate, SOL could reclaim $137 as support. A successful breakout beyond this level would open the door for a potential rally toward $155, effectively invalidating the bearish outlook.
Solana’s price could face additional losses if Bitcoin fails to regain momentum. The altcoin’s reliance on BTC’s stability adds to its vulnerability. Until Bitcoin reclaims key support levels, SOL’s macro momentum will likely remain bearish, prolonging its downtrend.
As the market conditions play a crucial role, investor confidence in Solana is likely to remain weak in the near term unless Bitcoin stabilizes and market conditions improve.
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