Solana Price Plunges 7% Despite Overtaking Ethereum in Weekly DEX Volume

The Solana price is bleeding, as it has slipped 7% at press time, with the SOL/USD trading at $146. Despite the plunge, its 24-hour trading volume has pumped 84% to $3.77 billion, signaling growing market interest in the token. Meanwhile, SOL is down 2% in a week and increased 10% in a month and a whopping 505% in a year.

Solana has continued to show renewed momentum, as Solana blockchain has hit $9B deposits amid institutional backing and growing meme sector resilience. Solana DEX Volume has skyrocketed by 50%, leaving Ethereum in the dust. 

🚨BREAKING: Solana overtakes Ethereum in weekly DEX volume for the first time in 43 days. pic.twitter.com/6zq0tORT0h

— SolanaFloor (@SolanaFloor) October 2, 2024

Nonetheless, Solana has integrated Bitcoin via Stacks to enable smart contracts, boosting its ecosystem’s speed and security.

Bringing programmable Bitcoin to Solana ft. @Stacks pic.twitter.com/Et5oN1eTEY

— Solana (@solana) October 2, 2024

Solana Statistical Data

Based on CoinmarketCap data: 

• SOL price now – $146
• Trading volume (24h) – $3.77 billion
• Market cap – $68 billion
• Total supply – 585 million
• Circulating supply – 468 million 
• SOL ranking – #5

Solana Technical Indicators Flash Bearish

The Solana price is bleeding in tandem with the crypto ecosystem at large, led by the pioneering cryptocurrency, Bitcoin. As stated earlier, the Solana price fell like a dead weight in the air with no strong guards to keep the bearish sentiments in check in the rectangle pattern. However, the bulls have gathered some stamina at around the $142 support level, regaining composure to prevent further downward losses.

In the meantime, the bulls might initiate a buy-back campaign, with the Solana price staggering in the oversold region. Technically, the SOL market paints the big picture bearish, with the bears quashing the buying pressure. To begin with, the Solana price has plunged below the 50-day SMA, reinforcing the bearish sentiment. However, if the $139 support holds (which coincides with the 200-day SMA), the bulls may build momentum for an upward movement. 

On the other hand, the Relative Strength Index (RSI) has plunged to the 30-oversold zone, tilting the odds in favor of the bears. Currently, the RSI sits at 37.89. However, the bears may have exhausted the downtrend, which may pave the way for the bulls. In such a case, the bulls might increase their buying appetite at this level, which could see the RSI jump above the 50-mean level.

Nonetheless, the Moving Average Convergence Divergence (MACD) upholds a bearish signal. This is evident as the blue MACD line has flipped below the orange signal line, suggesting intense selling pressure. In other words, the traders and investors are at liberty to sell their SOL, unless the MACD changes. 

Solana Price Prediction: Will the Bulls Capitalize on the Oversold RSI? 

In the 4-hour chart above, the odds lean in favor of the sellers, as the bulls are trying to build momentum before a substantial move upwards. In the meantime, if the bulls initiate a buyback campaign with the SOL token undervalued, the Solana price could surge. This will see the bulls reclaim the $157 mark. In a highly bullish case, a break and close above the $160 technical barrier, will see the Solana price rally to $180 or above $200. 

Conversely, if the sellers intensify the selling pressure, the SOL price would dive further. However, the $142 support level, would be in line to absorb the potential selling pressure. In a highly bearish scenario, the $139 mark, coinciding with the 200-SMA would act as a cushion against further losses.