SOL’s failure to keep up with the recovery trend signals the risk of a crash
In the last 3 days, when the entire market was on a recovery course, SOL could hardly keep up and not even gain in the slightest. So far, however, it has not disappointed investors.
SOL 4 Hour Price Chart | Source: Tradingview
SOL threatens to crash to $ 111?
Starting December 3, SOL raised a red candle during the week that caused the price to drop 18.65% to $ 190. At the time of writing, $ 183 is the critical support as it failed to hold the 50 SMA (simple moving average) as a support.
Currently, the 100 SMA coincides with the $ 183 level. Therefore, both are very important in determining the movement of the SOL.
Previously, a price test of the SMA 50 or 100 prevented the coin from falling further below the SMA 200. In the event of a SOL test of the SMA 200, the price would drop another 52% to $ 111. However, this won’t happen until it actually works during the bear market.
SOL price promotion | Source: TradingView
In addition, there is little possibility of such a deep decline as SOL is backed by investors. As recently as this week, SOL is the only altcoin after Bitcoin and ETH to see a sizeable inflow of $ 4.6 million despite the dire state of December.
Weekly wealth inflows | Source: CoinShares
An important advantage that SOL has always had over other Altcoins is a continuous development network. The Growth Activity Index hit an all-time high for the month and is continuing.
Solana’s development activities | Source: Antiment
For this reason, SOL is continuously supported by investors, which always lays the foundation for active social activism.
Social indicators from SOL | Source: Antiment
In fact, Solana is gaining more and more acceptance through various decentralized applications. At the same time, chains like SOL USDC now live on Liquid and the Drift Protocol that runs on the Solana chain are also some of the factors preventing the coin from suffering serious losses.
That said, new investors may want to keep an eye on the market for a while as the FTX’s funding rate rebounds after falling to a 6-month low.
Funding rate from SOL to FTX | Source: Antiment
Additionally, SOL’s risk-adjusted return is -2.81, which makes investing even more dire right now.
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SOL’s failure to keep up with the recovery trend signals the risk of a crash
In the last 3 days, when the entire market was on a recovery course, SOL could hardly keep up and not even gain in the slightest. So far, however, it has not disappointed investors.
SOL 4 Hour Price Chart | Source: Tradingview
SOL threatens to crash to $ 111?
Starting December 3, SOL raised a red candle during the week that caused the price to drop 18.65% to $ 190. At the time of writing, $ 183 is the critical support as it failed to hold the 50 SMA (simple moving average) as a support.
Currently, the 100 SMA coincides with the $ 183 level. Therefore, both are very important in determining the movement of the SOL.
Previously, a price test of the SMA 50 or 100 prevented the coin from falling further below the SMA 200. In the event of a SOL test of the SMA 200, the price would drop another 52% to $ 111. However, this won’t happen until it actually works during the bear market.
SOL price promotion | Source: TradingView
In addition, there is little possibility of such a deep decline as SOL is backed by investors. As recently as this week, SOL is the only altcoin after Bitcoin and ETH to see a sizeable inflow of $ 4.6 million despite the dire state of December.
Weekly wealth inflows | Source: CoinShares
An important advantage that SOL has always had over other Altcoins is a continuous development network. The Growth Activity Index hit an all-time high for the month and is continuing.
Solana’s development activities | Source: Antiment
For this reason, SOL is continuously supported by investors, which always lays the foundation for active social activism.
Social indicators from SOL | Source: Antiment
In fact, Solana is gaining more and more acceptance through various decentralized applications. At the same time, chains like SOL USDC now live on Liquid and the Drift Protocol that runs on the Solana chain are also some of the factors preventing the coin from suffering serious losses.
That said, new investors may want to keep an eye on the market for a while as the FTX’s funding rate rebounds after falling to a 6-month low.
Funding rate from SOL to FTX | Source: Antiment
Additionally, SOL’s risk-adjusted return is -2.81, which makes investing even more dire right now.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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