Solana Tumbles in Market Downturn, But Altcoin Season Hopes Linger

Solana's latest price drop of 6% brings its current value to $134.34, amid a broader market decline led by Bitcoin's 2% loss. Despite this, anticipation remains high for an altcoin season, with Solana showing potential for upside after completing a rounding bottom pattern. Meanwhile, the Solana meme coin Smog has been gaining attention with its "greatest airdrop in history," offering significant returns for holders and participants in community quests.

Solana Price Plunges Amidst Market-Wide Decline, But Altcoin Season Anticipation Remains

The price of Solana (SOL) has experienced a significant drop of 6%, trading at $134.34 as of 04:50 a.m. EST. This decline is accompanied by a 10% decrease in trading volume. The downturn follows a broader market trend, led by Bitcoin (BTC), which has dipped by 2%.

Despite the current market conditions, there is still anticipation for an altcoin season, where capital shifts from Bitcoin to alternative cryptocurrencies. Historically, altcoins have shown a tendency to rally in the medium to short term following Bitcoin's halving event. This effect is attributed to the bullish sentiment inspired by the milestone.

Technical analysis indicates that the odds may favor an upswing for Solana. The Layer-1 (L1) token has recently completed a rounding bottom pattern, a bullish reversal pattern that suggests a shift from a downtrend to an uptrend. This pattern is characterized by a prolonged downturn in an asset's price, followed by a recovery that resembles the shape of a "U." It signifies a change in long-term price movement or an adjustment in sentiment from bearish to bullish. In this case, the price decline has lost its momentum and has been replaced by a steady recovery, potentially signaling a breakout to the upside.

Further supporting the possibility of an upswing is the fact that Solana bulls have maintained support at $130.45 for over a month, suggesting a potential recovery is underway. This notion is reinforced by the Relative Strength Index (RSI), which remains above the mean level of 50. The RSI is an indicator that measures the magnitude of recent price changes to assess the strength or weakness of a trend. Its position above the midline suggests that bullish sentiment persists in the Solana market.

If SOL bulls successfully activate the rounding bottom pattern by overcoming the $130.45 support, the Solana price could rebound towards a supply zone ranging from $197.70 to $250.21. A breakout and close above the midline of this range on the weekly timeframe, at $224.14, would confirm the continuation of a primary uptrend.

In a highly bullish scenario, the Solana price could transform the supply zone into a support or bullish breaker, confirmed by reclaiming the all-time high at $259.90. This would establish a new higher high and potentially spark a further rally.

On the other hand, if bears regain control, the Solana price could fall below the $130.45 support level. This would be a critical development for the L1 token, potentially exposing it to a decline towards $80.00. A candlestick closing below this level would invalidate the bullish thesis.

Smog: A Promising Alternative to Solana

Amidst the uncertain outlook for Solana, some traders are turning their attention to Smog ($SMOG), a Solana-based meme coin that has gained attention after its first season airdrop distributed $1 million in giveaways.

Smog's Season 1 airdrop rewarded $SMOG token holders who participated in the project's quest board on Zealy. Those who completed daily quests and community tasks earned rewards in the form of experience points (XP).

The first season concluded on April 3, with an impressive 9 million quests completed by almost 50,000 participants.

Season 2 of the Smog airdrop commenced on April 4 and is currently ongoing. Unlike the first season, this season assesses the on-chain activity of SMOG holders since the launch of the project. It also continues to reward community involvement and quest completion.

In addition to airdrops, $SMOG holders can stake their tokens on the Ethereum network for a 42% return. They can also purchase and stake $SMOG on the official website to receive a 10% discount on their investment.

$SMOG made its debut on the Jupiter decentralized exchange (DEX) in February and is now available on the MEXC centralized exchange (CEX). The team has hinted at the possibility of another top-tier exchange listing soon, which could contribute to increased hype and potentially boost its price.