Solana Price Prediction as Technicals Hint at a Potential 40% Crash Soon – Is a Downturn Imminent?
Source: Dall•E 3
The Solana price has risen by 2.5% in the past 24 hours, climbing to $76.91 on a day when the cryptocurrency market as a whole has barely moved.
SOL is now up by 16% in the last seven days and by 29% in the last 30, with the altcoin one of the best-performing top-100 coins in the market right now.
Yet the market’s eagerness for SOL may be about to wane, with the token’s technical indicators forming a bearish divergence in the past few days, suggesting that a big dive may be coming fairly soon.
Solana Price Prediction as Technicals Hint at a Potential 40% Crash Soon – Is a Downturn Imminent?
The issue with SOL’s chart at the moment is that, even though it has recorded a gain in the past 24 hours, it has also produced a ‘bearish divergence’ as a result of its relative strength index (purple).
That is, its RSI has remained relatively weak in the past week or so, dropping from above 70 to 60 yesterday, a decline which undercuts today’s price rise.
Source: TradingView
At the same time, SOL’s trading volume remains subdued in comparison to the high levels it recorded in early December, when it topped $4 billion.
Now its volume sits at around $2 billion, which is still healthy enough, but which may continue to decline in the next few weeks.
That a decline may be coming soon is also arguably signalled by SOL’s 30-day moving average (yellow), which has been well above its 200-day (blue) for several weeks.
In other words, it’s arguable that the market has overbought SOL, and that the latter needs to correct a little before it can return to growth.
Having said that, it may not be too long before SOL rallies again, given that analysts are generally expecting a bull rally to occur in the next few weeks.
Following yesterday’s news of #Blackrock‘s revised #ETF proposal for the #SEC‘s approval, which now includes the addition of cash redemption, trader optimism has jumped. In previous instances of anticipation of ETF approval, prices have jumped. Thus far, this small
(Cont) pic.twitter.com/i61grqYkFP
— Santiment (@santimentfeed) December 20, 2023
Such a rally could occur in the first one or two weeks of January, when the SEC is likely to approve several Bitcoin ETFs.
Such approvals will heighten bullishness across the board, with the Solana price rising in step with the market.
It’s also significant that Solana has grown as a blockchain platform this year, with its network witnessing a growth in NFT issuance and DeFi activity.
As such, SOL could be one of the big gainers in 2024, with its price potentially reaching $100 by the end of Q1.
New Altcoins with Strong Rally Potential
Because traders may have overbought SOL this year, it could correct for a few weeks before rising again.
This means that many traders may prefer to accumulate other tokens at the moment, with a number of newer alts and presale coins showing lots of potential right now.
And one of the strongest presale tokens available at the moment is Bitcoin Minetrix (BTCMTX), an Ethereum-based stake-to-mine platform that has raised more than $5.5 million over the past couple of months.
#BitcoinMinetrix has successfully raised more than $5,400,000! pic.twitter.com/eD8FvCkXJQ
— Bitcoinminetrix (@bitcoinminetrix) December 19, 2023
Bitcoin Minetrix is having one of the biggest presales of the year, with investors drawn towards its unique platform.
In particular, its platform will enable users to mine actual Bitcoin (BTC) by staking its native BTCMTX token.
By staking BTCMTX, not only do users receive a passive staking income, but they also receive tokenized mining credits.
They can use such credits to pay for Bitcoin mining, in the process earning themselves newly mined BTC.
Combined with its simple, user-friendly interface, such a setup means that Bitcoin Minetrix is set to make Bitcoin mining more accessible to thousands of crypto holders.
This all helps to explain why its presale has been so successful, with new investors still able to join by heading to the Bitcoin Minetrix official website.
The sale is due to end in the next few weeks, at which point BTCMTX will list on trading platform, where it could rally big.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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