U.Today – has seen a sharp 21% drop over the past three days, erasing some of the impressive gains from its recent rally. This sudden reversal is partly attributed to the meme coin frenzy, which initially boosted Solana’s ecosystem but has now turned into a liquidity drain, leaving the asset vulnerable to a sell-off.
Increased network activity and intense speculative interest in meme coins based on the Solana blockchain helped SOL reach its most recent peak of $295. But the momentum stalled, and SOL is currently trading close to its 50 EMA at $238. A breakdown below this level, which is currently at $240, could expose SOL to additional downside risks, but it also acts as immediate support.
The Solana meme coin rally played a major role in its bullish run, drawing speculative inflows to projects that took advantage of Solana’s low fees and high throughput. Bearish pressure is being created, though, as the same liquidity that drove SOL higher is now leaving as the hype fades.
Because of this change, Solana is now vulnerable, underscoring the dangers of relying too much on transient speculation. Recovering the $260 resistance and holding the $240 support level are necessary for SOL to get back on track. Restoring bullish momentum with a move above $260 might retest the $280-$295 range. On the downside, if SOL is unable to hold onto $240, it may fall toward $213, which is in line with the 100 EMA and a crucial support area from the consolidation in December.
‘s questionable trend
Bitcoin has hit a critical resistance level at $102,000, struggling to break through despite a generally bullish market trend over the past few weeks. The cryptocurrency’s inability to make a decisive move past this level highlights several factors currently holding it back.
The slowdown in institutional inflows is one important contributing factor. Institutional investors made a substantial contribution to Bitcoin’s recent surge. But as the market euphoria wanes, this momentum seems to be fading. Additionally, the general enthusiasm for meme coins and altcoins that drove this rally’s early phases has diminished. Because of this, overall liquidity and inflow into Bitcoin have lagged, resulting in a period of consolidation for the cryptocurrency.
Bitcoin is currently trading just above its 50 EMA, which has served as a support level in this upward trend. Even so, the trading volume is down, indicating that traders are unsure of their next course of action. The fact that the RSI is…
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