Solana’s Impact in the Crypto Market
In the last quarter of 2023, the most prominent altcoin project that emerged during the rally in the crypto market was undoubtedly Solana. The popular Layer-1 network Solana saw a significant contribution from airdrop events and the hype around memecoin tokens. However, the recent increase in scam incidents within the ecosystem has caused fear and concern among users, which directly affected the price of SOL.
Solana Technical Analysis
The first notable pattern structure in the four-hour Solana chart is the descending channel formation. This pattern structure provides important clues to many investors, and the absence of any support or resistance breakout is of great significance. Particularly, the recent formations taking support from the EMA 200 (red line) level is a positive development in the short term.
- Important support levels on the four-hour chart: $93.29, $90.75, and $87.20
- A four-hour bar closing below $90.75, intersecting with EMA 200, could create selling pressure.
- Important resistance levels on the four-hour chart: $96.33, $100.16, and $104.26
- A four-hour bar closing above $104.26, intersecting with the formation resistance line, will accelerate SOL’s price significantly.
SOL/ETH Technical Analysis
In the four-hour SOL/ETH chart, the pair has closed the first bar below the support line. This decline, with a close below the EMA 200 level, will lead to Solana losing value against Ethereum. The recent shift of investors towards Ethereum has also contributed to the decline in the SOL/ETH pair.
- Important support levels in the SOL/ETH pair: 0.03793, 0.03604, and 0.03424
- A four-hour bar closing below 0.03793, a significant support during the recent drop, indicates Solana continues to lose value against Ethereum.
- Important resistance levels in the SOL/ETH pair: 0.03974, 0.04131, and 0.04315
- A four-hour bar closing above 0.03974, intersecting with EMA 200, indicates Solana is gaining value against Ethereum.
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