Solana (SOL) Price Down Over 10% After Minor 24-Hour Loss to Trade at $125.06

The Solana price is down over 10% on the weekly timeframe after a minor 24-hour loss to trade at $125.06 as of 9:39 p.m. EST as traders dump their holdings

The Solana price dropped over 10% on the weekly timeframe and 24-hour time frame to trade at $125.06 on Monday evening. On the other hand, trading activity for the altcoin in the same time period jumped more than 77% to over $3.1 billion.

While the majority of the crypto market is currently in the red, the broader market showed some strength with a 24-hour loss of less than 1%.

Top Gainer (24 Hour Time Frame)

Cryptocurrency prices can be volatile and may vary widely from one time period to another. Past performance is not necessarily indicative of future results. Before investing in any cryptocurrency, it is important to conduct your own research and consider your own financial situation.

Solana Price In A Consolidation Pattern

Daily chart for SOL/USD (Source: GeckoTerminal)

The Solana price has been in a consolidation phase between $119.06 and $149.45 in the last 2 weeks, according to data from GeckoTerminal. This period of sideways trading could be due to traders waiting for a confirmation of SOL’s next move before entering the market.

Should the Solana price start to rise, it might try to flip the resistance level at $149.45 into support. After which, continued pressure from buyers could end up pushing SOL all the way up to $183.04 in the short term.

On the other hand, a drop below the $119.06 support might expose the Solana price to the risk of plunging all the way down to $87.07 in the short term.

Solana Price Could Drop Further In The Next 48 Hours

From a technical standpoint, indicators on SOL’s daily chart indicate that the crypto’s price might drop in the next 48 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are starting to show early bearish signs.

In the last 48 hours, the MACD line has started to drop towards the MACD Signal line. Traders might see the current alignment of the two technical indicators and the narrowing gap between them as an indication of weakening bullish momentum. The MACD line crossing below the MACD Signal line could confirm that SOL has entered a negative trend.

Meanwhile, the RSI has leveled off in the low 40s. The latest reading below the neutral 50 mark suggests sellers have a slight upper hand over buyers on the daily chart. If bears choose to capitalize on this advantage, it will be easier for them to force the Solana price down in the short term than it will be for bulls to push SOL up during the same period.

As traders wait for a confirmation of what the Solana price will do next, investors continue to flock to the presale for a new project called Solaxy (SOLX) for gains. This is as popular YouTube channel 99Bitcoins, which has over 725K subscribers, predicts SOLX could soar 100X after launch.

The First Scaling Solution For Solana

Solaxy is a pioneering project as it’s the first layer-2 scaling solution for the Solana ecosystem. This comes amid a surge in hype around SOL-based meme coins in recent times, which has led to extremely high levels of congestion on the Solana network.

If something does not change soon, Solana could suffer another outage. This is where Solaxy comes in.

The project will alleviate the stress on Solana’s infrastructure by bundling SOL transactions off of the Solana mainnet and on its own sidechain using technologies called rollups. After which, it will submit the batches of transactions to the layer-1 for final validation.

This approach to transaction processing has been tried and tested within the Ethereum ecosystem through solutions such as Arbitrum and Optimism. It has also proven to increase transaction efficiency and subsequently lead to a high degree of scalability for a major layer-1 blockchain.

In addition to scaling Solana, Solaxy will bridge the network with the Ethereum blockchain as well. This will create a new super Web3 ecosystem that leverages the strengths of two of the most prominent blockchains in the crypto space. SOLX will then be positioned as a primary transaction layer between Ethereum and Solana, which will boost its utility.

Investors Bet Big On SOLX’s Future

Solaxy’s mission to scale Solana appears to have resonated with investors, who have poured more than $28.6 million into SOLX’s ongoing presale. This buying frenzy at this early stage is likely to continue given the 142% APY on offer to buyers who lock up their tokens during the presale phase.

Interested investors can acquire SOLX for $0.00168 apiece via the buy widget embedded on the project’s website using either crypto or bank card. Once purchased, the tokens can then be put to