Solana (SOL) Price Plunges 8% as Investors Decrease Exposure to the Altcoin

The Solana price plunged over 8% in the last 24 hours to trade at $232.35 as of 10:04 p.m. EST as investors decrease their exposure to the altcoin.

Investors are decreasing their exposure to Solana (CRYPTO: SOL) as the altcoin’s price dropped over 8% in the last 24 hours to trade at $232.35 at 10:04 p.m. EST.

This drop in the SOL price comes after the crypto was able to set a new all-time high at $294.33 yesterday.

Solana Price Drops Below Support

4-hour chart for SOL/USD (Source: GeckoTerminal)

The Solana price dropped below the support level at $280.68 in the last few hours, according to GeckoTerminal data. If sellers continue to exert sell pressure on the altcoin, it could stand the risk of testing the $245.89 support soon. A break below this second technical crutch might then expose SOL to the risk of plummeting all the way down to $214.66.

On the other hand, the Solana price reclaiming the $280.68 support within the next 12 hours might invalidate the bearish thesis. In this alternative scenario, the altcoin could try to flip the resistance level at $316.37 into support. A 4-hour candle close above this level might then give SOL the foundation needed to keep rising in the short term.

Technicals Warn The Solana Price Drop Is Not Over Yet

From a technical standpoint, there are warning signs on SOL’s 4-hour chart that point to a continued decrease in the Solana price. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators warn that sellers show no intentions of easing their pressure on the crypto’s price.

RSI readings dropped from the overbought region above 70 to around 68, signaling a decrease in buyer strength. Additionally, the negative slope of the RSI line suggests bears are still chipping away at bulls’ strength. The RSI dropping below 50 could suggest that sellers have taken complete control of the Solana price.

There is also a major bearish technical flag that is on the verge of being triggered by the MACD. In recent hours, the MACD line has started to collapse towards the MACD Signal line. This narrowing gap is often interpreted as an indication that a crypto’s bullish momentum is cooling. Should the two lines cross soon, it could confirm that SOL has entered a negative trend.

As the Solana price tries to fend off pressure from bears, investors continue to buy into new Solana layer-2 project Solaxy (SOLX) to grow their portfolios. 99Bitcoins, a popular YouTube channel with over 721K subscribers, says SOLX might soar 100X after its official launch.

Unlocking Solana’s Full Potential

Solana has been the network of choice for meme coin developers in recent months given its high speeds and low fees. In fact, Official Trump (TRUMP), a meme coin developed and deployed by the US President-elect’s team, was also launched on Solana over the weekend, bringing a wave of new users to the blockchain.

As meme coins, such as TRUMP, make their way into the Solana ecosystem, the Solana network stands the risk of another outage. In recent months, the meme coin hype tested the blockchain’s infrastructure, which led to some down time. With talks of a 2025 meme coin supercycle, Solana will need all the help it can get to avoid going down again.

This is where Solaxy, with its native layer-2 chain and scaling technology, comes in. Unlike previous layer-2 projects, Solaxy is the first to focus on scaling the Solana network.

The project’s chain will run in parallel to the Solana mainnet, providing additional computational resources to process transactions and reduce some of the congestion on the Solana network. Not only will this enable Solana to process transactions at higher speeds, it will also decrease the network’s already-low transaction fees.

The project also aims to bridge the Solana and Ethereum networks to create a super Web3 ecosystem. Solaxy’s SOLX token will then serve as a value transfer medium between two of the most prominent chains in the crypto sector.

Solaxy Presale Closes On $12 Million

Solaxy has raised more than $11.9 million through its blockbuster ICO so far, signaling a lot of investor strength in the project’s future. This buying frenzy could continue given the high 306% APY on offer to anyone who buys and stakes SOLX at this early stage.

To unlock these rewards, investors will first need to buy the crypto through the easy-to-use widget embedded on the project’s website. Selling for $0.001606, SOLX can be bought with both crypto or bank card.

Once purchased, investors will then just need to navigate to the staking page on the project’