At the start of June, the crypto market was bullish. Unfortunately, as of the 2nd of June, prices have dropped. Solana is not left out. Last week, the altcoin was down due to an outage in the blockchain. Consequently, this affected its trading price.
The currency received much attention on the 27th of May after it fell to $40.15. Several analysts had predicted the currency would beat the resistance at $50.
However, the selling pressure at the $48 region caused the bullish move to collapse. Moreover, in the past 24 hours, the price of the coin has dropped by around 9%.
If the current decline continues, the currency might fall towards the next support level. Meanwhile, this could attract more buyers waiting to enter the market at a lower price.
Major Decline In The Crypto Market
In addition, major digital currencies have also dropped prices recently. Bitcoin, the flagship currency, is presently trading in $29,000 region. The currency previously crossed the $30,000 mark, but the buyers could not sustain it.
Also, Ethereum failed to overcome the barrier at $2000, crashing back to $1,800. This meant a loss of over 6% in 24 hours. Other leading coins affected include DOGE (-5%), ADA (-8%), and XRP (-3%)
Due to the price fall in the crypto market, the total market cap has plunged. According to CoinMarketCap, it slipped by 5.21% over the past 24 hours. As of writing, the entire crypto market cap was $1.23 trillion.
Market Analysis Of SOL
According to TradingView, Solana’s price chart over 24 hours shows a downward movement. The altcoin met with a region around the $48 mark. Therefore, it could not climb above the former resistance at $50.
Solana moved towards the next available support, $39.65. Furthermore, let’s look at the Relative Strength Index in the past 24 hours. There is an oversold region around the $32.66 area.
The Moving Average Convergence Divergence (MACD) will go lower if it remains beyond the neutral zone. As a result, we can expect a bearish move in the next 24 hours.
However, buyers can enter the market to stop the bearish wave at the $38 region. If the RSI continues to decline, the coin might drop back to $37.39, its price on the 12th of May.
In the past, analysts predicted that Solana would be the “Visa” of the crypto industry. Unfortunately, the recent outages keep hampering the full utilization of the network. This has shunned investors away and is stunting the growth of the ecosystem.