Solana Price Plunges 5% Amid Accelerated Sell-Off; Can Bulls Recover The Market?

Solana price (SOL) has flipped bearishly in the crypto market, with SOL/USD down 5% to trade at $130, raising questions on the ongoing marketwide sell-off. Despite the fall, its trading volume has soared 18% to $3 billion, signaling a rise in market activity. Solana has been trading around the $150 level again, having risen 12% last week.

This comes amid the excitement about the possibility of a spot Solana ETF (exchange-traded fund). VanEck is the first company in the United States to file for the financial instrument. Moreover, the head of research, Mathew Sigel, noted that VanEck’s move is a play on the possibility that Donald Trump will become president and that the leadership of the Securities and Exchange Commission is changed.

🚀VanEck has filed for the first-ever Solana ETF in the U.S. Introducing the VanEck Solana Trust, aiming to harness Solana's decentralized power and high utility. Stay tuned! 🌟#AblesRT #sec #trading #VanEck #Solana #Crypto #ETF pic.twitter.com/SWJRylgSWs

— Sequential Rotation T Official (@SRTradeofficial) July 4, 2024

On the other hand, Whale Alert has disclosed four major transactions to Coinbase, a major exchange platform. The first transaction shows a transfer of 322,817 SOL worth $45.5 million from an unknown wallet to Coinbase. A subsequent transfer of 318,664 SOL was also sent to the same address. Notably, 317,314 SOL and 322,817 SOL were transferred from unknown wallet to Coinbase. 

This comes amid a crypto bloodbath, as the overall market sector is facing a huge downturn. The sudden transfer of SOL to Coinbase has added to the bearish sentiment surrounding the coin.

Solana Statistical Data

Based on Coinmarketcap data:

• SOL price now – $130
• SOL market cap – $60 billion
• SOL total supply – 579 million
• SOL circulating supply – 462 million 
• SOL ranking – #5

Since the end of June, the Solana price has been trading upward, through a markup phase to the $154 resistance level. The bears took control at this level on July 3, pushing the token down within a falling channel pattern.

The SOL price is trading with a bearish bias as the buying momentum is dwindling, paving the way for the seller in the market. For starters, the Relative Strength Index (RSI) is recording lower highs, as it has plunged towards the 30-oversold region, currently at 28. This suggests a strong bearish sentiment, tilting the odds towards the sellers. 

The Moving Average Convergence Divergence (MACD) has crossed below the signal line (orange band). This crossing generally suggests that the short-term momentum has turned negative, and the potential for a further decline in the stock price may be looming. Moreover, the histogram bars flash red and increase in size, indicating intense selling pressure. 

On the other hand, the SOL price is trading below the 50-day and 200-day SMA(Simple Moving Averages), with $142 and $148 acting as immediate resistance keys. This indicates a strong bearish thesis, giving the bears the upper hand. 

Solana Price Prediction

In the 4-hour chart analysis, the odds favor the sellers, with the big picture painted bearish. If the sellers keep dominating the SOL price market, they might drive the price to retest the $122 psychological level.

In a dire case, if the bulls seize the opportunity to buy the dip, the SOL price could recover, triggering a bullish reversal in the market. In such a scenario, the bulls might target the major resistance keys at around $142. If the bulls flip the 50-da SMA into support, they could grow hind wing, propelling the price to around the $175 technical barrier.

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