Unlocking the mystery behind Solana's recent 12% price drop in the crypto market

Solana (SOL) has quickly become one of the most popular cryptocurrency assets among investors, because of its lightning-fast transaction speeds and innovative offerings.  As of now, the Solana(SOL) price stands at US$177.76, reflecting a 12.98% decrease over the past 24 hours. This recent price movement has resulted in Solana's market capitalization being valued at $78.14 billion. In 2024, Solana has seen a significant change of 78.58% in its price, indicating its growth and volatility in the cryptocurrency market.

Solana(SOL) Price Action:

Solana's current outlook is optimistic, supported by technical analysis. The pivot point stands at $176, which indicates a neutral stance with the potential for price movement. Resistance levels are identified at $205 and $199, indicating where the price may encounter selling pressure. Conversely, support levels are established at $172 and $177, representing levels where buying interest could emerge.

The Relative Strength Index (RSI) reading of 42.52 suggests that the trend is shifting in the 4H timeframe, but more confirmation is needed to call it a bearish reversal. The 50-day Exponential Moving Average (EMA) at $132.76 adds to the positive sentiment, indicating a strong underlying trend.

While there may be some volatility, indicated by the upward channel support near $172.45, the overall trend for Solana remains bullish. A breach below this support could lead to a shift in sentiment, but the likelihood of continuing the bullish trend is high.

Solana's Token Burn

A recent event with Solana-based memecoin Slerf drew notice after its creator mistakenly burnt a major percentage of the token supply, leading to a $10 million loss. The incident occurred when the developer, known as @Slerfsol on X, accidentally torched the liquidity pool and tokens designated for the airdrop during a Space on X. Despite this setback, the price of SLERF has risen by more than 2900% in the last 24 hours, driven by speculative trading. The SLERF trading pair on Raydium has more than $2.5 billion in daily trading volume, making it the most commonly traded pair on Solana. Despite its recent inception, SLERF has been listed on centralized exchanges like HTX, Gate.io, Bitget, BingX, and MEXC, with Bybit selling perpetual futures contracts on the currency. This instance highlights the quick growth and funding of several Solana memecoin initiatives over the weekend.

SOL Price Analysis:

In a remarkable 24-hour period, Solana's value surged by 6.38%, reaching an impressive $204.43. This surge not only showcases Solana's strong growth trajectory but also solidifies its position as the fourth-largest cryptocurrency by market capitalization. The quick growth in value reflects a growing interest and trust in Solana among investors and dealers. However, it has gently declined from $204 to $172 as crypto markets dipped, currently at $176.

Over the last year, Solana has emerged as one of the outstanding performers in the crypto price sector. This exceptional performance not only speaks to Solana's inherent strength but also signifies the changing dynamics within the cryptocurrency landscape.

Despite confronting hurdles such as market liquidation events, Solana has shown extraordinary resilience, contributing $17.43 million to total liquidations while continuing on its rising trend. This resiliency reinforces Solana's status as a strong and promising cryptocurrency capable of navigating the stormy seas of the digital asset market. As Solana continues to garner attention and gain traction, investors and analysts are keeping a close eye on its progress, with its positive trend and high investor demand indicating that it is prepared to maintain its upward momentum for the foreseeable future cryptocurrency market.