Solana (SOL) has gone down by 14% in the past week as the crypto market has been cooling off after a few weeks of strong rallies.
Trading volumes have surged by 35% in the past 24 hours, even though SOL has just dropped by 0.8%, which suggests some sort of accumulation at these levels.
This setback has pushed Solana’s year-to-date performance to a 19.2% loss as the rally encountered strong selling pressure once it neared the $190 level.
Meme coins, an important part of Solana’s DeFi ecosystem, experienced significant price upticks recently and fueled the demand for SOL.
However, rising tensions between the U.S. and China on the trade front lately have contributed to plunging the crypto market in the past few days, as the White House accused Beijing of violating their agreement on tariffs.
The market was spooked by President Trump’s hostile rhetoric as he suggested that he would impose high levies on Chinese imported goods once again in response to the Asian country’s reluctance to comply with the terms and conditions they negotiated.
The market’s Fear and Greed Index has now entered neutral territory after a few days of standing at “greed” levels. This indicates that investors’ bullish sentiment has shifted a bit as they expect further information that they can act on.
Solana Could Drop to $115 if This Happens
Looking at the daily chart, Solana is currently tagging the key support of its bullish structure, which is the second-best higher high.
So far today, that support has held. However, the American session just started, and distribution typically accelerates later in the day, so traders should keep an eye on how the session plays out before making a decision.
The chart shows the key levels to watch depending on how the price behaves moving forward. A bearish breakout below $140 could result in a more pronounced downturn for Solana that pushes it to $115 or so. This bearish move would be confirmed by a retest of the $140 level from below.
The Relative Strength Index (RSI) has been trending lower for a few days, which favors a bearish outlook. Hence, traders should with the trend at this point and wait for a break below $140, and its corresponding retest, to confirm a more pronounced move downwards.
If U.S.-China tensions increase, this would provide the necessary catalyst for a significant downturn.
On the contrary, if the price bounces off the $140 level, this would confirm a bullish outlook and a potential retest of the $180 area in the near term.
Although SOL’s outlook is a bit uncertain at the moment amid these macro headwinds, the hottest crypto presales linked to this blockchain like Solaxy (SOLX) will likely outperform well-established tokens this year.
Solaxy (SOLX) Will Still Be Available at a Discounted Price for 14 More Days
Solaxy (SOLX) is entering the last few days of its presale and has managed more than $43 million during the market’s last leg up, as investors are quite excited about the launch of its layer-two scaling solution.
Solaxy solves Solana’s congestion issues by bundling transactions offline in a side chain to alleviate the mainnet’s burden and increase its efficiency.
The developing team has already launched a block explorer for the Solaxy test so project supporters and prospective investors can see in real time how the protocol is performing.
As the solution’s utility token, $SOLX will be in high demand once Solaxy is embraced by top wallets and exchanges. In addition, the token currently offers staking rewards of 93% for those who are willing to lock up their assets to secure the L2.
To buy $SOLX at its discounted price before it is listed on exchanges, head to the Solaxy website and connect your wallet. You can either swap USDT or SOL for this token or use a bank card to invest.
