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Solana (SOL) has gone down by nearly 13% in the past 7 days as the crypto market was spooked by the latest developments in the Middle East.
The Fear and Greed Index has moved down to 48 after reaching nearly 76 at some point in the past 30 days, indicating that investors are leaning toward a fearful attitude.
The Federal Reserve’s interest rate decision today is also injecting a certain degree of volatility into the market as today’s price action has been mostly bearish ahead of the central bank’s meeting.
SOL has gone down by 2.5% in the past 24 hours but trading volumes are relatively calm ahead of this event.
Meme coins have suffered a strong setback lately. Top assets in this category within the Solana blockchain like SPX6900 (SPX) and Fartcoin (FARTCOIN) have experienced strong 7-day losses of 21% each. Meanwhile, dogwifhat (WIF) and Pudgy Penguins (PENGU) have lost nearly a quarter of their value during this period.
This negatively impacts the performance of Solana as DEX trading volumes tend to dry up when the markets go down, which results in lower demand for SOL.
Data from DeFi Llama indicates that DEX volumes have gone down from around $29 billion during the first week of May to $16 billion as of last week. This could be an early indication that the meme coin cycle has reached a tipping point.
Solana Needs to Bounce Off $140 to Have a Chance of Recovering
Looking at the daily chart, we can see three key levels to watch for the next few days and especially after today’s FOMC meeting.
The most relevant one is the $140 level, as this price mark has acted as support multiple times in the past 45 days or so.
If buying pressure is still high at this level once the price touches it again, this could anticipate a strong bounce to $155 in the near term. This would be the next level to watch as potential resistance.
The last time the price bounced off $140, SOL got to $165. It was a lower high compared to the previous bounce. However, a successful retest would solidify its importance to market participants and could support another push to $185.
Momentum indicators are currently favoring a bearish short-term outlook as the price still sits at $146. The Relative Strength Index (RSI) currently stands at 41 meaning that the downtrend’s strength is high.
A ‘golden cross’ between the 9-day and 21-day EMA will confirm a bullish outlook for SOL in case of a bounce.
Despite this latest setback for Solana, its meme coin and DeFi ecosystem have been expanding at a fast pace in the past few years.
To help the network keep up with rising transaction volumes, a new crypto presale called Solaxy (SOLX) will soon launch its layer-2 scaling solution for this blockchain. Its presale ends in 5 days and you don’t want to miss it.
Solaxy (SOLX) Prepares to Launch its L2 Mainnet After Its Presale Ends
Solaxy (SOLX) is getting ready to wrap up its successful presale after raising $54 million from investors to launch its scaling protocol.
The developing team recently released their launch schedule, which includes key dates like July 7, when they plan to release the L2’s mainnet.
The Solaxy testnet has already been running for a while and investors can check its performance through the project’s block explorer.
As top wallets and exchanges embrace Solaxy, the demand for its utility token $SOLX, will skyrocket.
Hence, this is a good chance to buy this token at a discounted price before the presale ends. In addition, the project offers staking rewards of 78%.
To buy $SOLX, head to the Solaxy website and connect your wallet. You can either swap USDT or ETH for this token or use a bank card to invest.
