Solana Slashes Saga Price by 40%, Amplifying Potential for New Yearly High in SOL

Solana Mobile Reduces Saga Smartphone Price by 40%

Solana Mobile, a subsidiary of Solana Labs, has recently announced a significant price reduction for its Saga smartphone. The price has been slashed from the initial $1,000 to a more affordable $599. This bold move comes merely four months after the smartphone’s launch, sparking widespread interest and discussions within the cryptocurrency community.

Motivation Behind the Price Cut

The official statement released by the company indicates that this price adjustment is a strategic step towards encouraging broader adoption of mobile web3 technology. The primary objective is to enrich the user experience for the Solana mobile community. However, insights from on-chain data offer a slightly divergent perspective.

On-chain Data Insights

According to data compiled by Flipside Crypto, sales of the Solana Saga smartphone have experienced a notable decline following their peak in April and May. This trend is exemplified by the volume of Saga Genesis NFT mints. These NFTs are generated when users set up their Solana Saga smartphones and access the Solana app store. A visual representation of this decline is depicted in the following chart. Since June, sales volume has maintained a consistent flat trajectory after a successful May 2023.

Reactions and Responses

The reduction in price has prompted mixed reactions on social media platforms such as Twitter and X. While some early adopters expressed frustration over their initial higher-priced purchases, others came to the defense of the decision, highlighting the advantages of being early supporters. Notably, early owners had the exclusive opportunity to mint Claynosaurz NFTs. These NFTs are currently valued at a floor price of approximately 33 SOL on Magic Eden, equivalent to over $800.

Solana (SOL) Price Analysis

Conversely, the Solana (SOL) token is displaying a bullish trajectory. As of the current moment, SOL is trading at $24.38. A comprehensive examination of the daily chart reveals SOL’s successful breakout from its previous downtrend channel. This breakout was confirmed on a Monday, with the price finding support at both the channel’s trend line and the 200-day Exponential Moving Average (EMA).

In light of this bullish confirmation, SOL has surpassed the 50% Fibonacci retracement level at $23.94. Presently, it appears that SOL is capable of defending this level and potentially embarking on a new upward movement towards the 61.8% Fibonacci retracement level at $27.42.

Significantly, on July 14, SOL reached its peak for the year at $32.36 before experiencing a retracement from the 78.6% Fibonacci retracement level. Consequently, SOL retreated below the 61.8% Fibonacci level and struggled to maintain a daily close above it.

Within this context, the $27.42 price point assumes paramount importance as the current pivotal resistance level. A breakout beyond this level could pave the way for a clear trajectory towards the year’s peak. This scenario suggests an imminent bullish breakout. However, it’s prudent to anticipate substantial profit-taking around the $32.36 mark. Should the year’s peak be surpassed, the bullish momentum could target the 1.618 Fibonacci extension level at $56.86.