Crypto Solana: Between triumph and stumble, the mysteries of SOL revealed!

SOL from Solana seems to be stumbling around $104, with a decline of 9.8% in three days, raising questions in the context of crypto competition. Solana’s robustness is being questioned despite its market cap of $45 billion, comparable to BNB. A week prior, SOL had declined from its peak at $126, sparking concerns about a bearish trend. While investors are closely monitoring Solana’s performance amidst technical challenges.

SOL from Solana, Unwell?

Recently, we have seen the Solana token climb to the top with a weekly rise of 15.34%. Behind this success, Orca, Solana’s decentralized crypto exchange platform, has seen its weekly volume explode by nearly 50%. The steady growth of the native SOL crypto also comes from the growing enthusiasm for WEN, a memecoin based on the Solana blockchain. And from the increase in volumes on Jupiter, a decentralized crypto exchange. Interest peaked with the JUP token airdrop scheduled for January 31.

Solana price dropped nearly 10% in the past 48 hours, but @noshitcoins says surging user activity is a positive for the network. https://t.co/GXIQt4Dc80

— Cointelegraph (@Cointelegraph) February 1, 2024

Solana (SOL) struggles to surpass $104, falling by 9.8% in three days and 10.7% in a month, as pointed out by Cointelegraph. Comparatively, Ethereum and BNB have decreased by 1.2% and 2.6%, respectively. This underperformance raises questions, especially with the robust fundamentals of the Solana network. Resistance at $104 might be related to the market cap of $45 billion, aligned with that of BNB. However, BNB Chain with $3.54 billion of total value locked (TVL) outperforms Solana with its $1.6 billion, according to DeFiLlama.

A week ago, BeInCrypto reported that the SOL crypto had declined from its peak at $126 on December 26, 2023. Daily and six-hour charts indicate a bearish trend. However, a recovery from the triangle support line could reverse the trend. SOL’s price has deviated from a 100-day ascending trend line and a short-term symmetrical triangle, breaking through a Fibonacci support zone. The daily RSI showed a downward trend, suggesting selling pressure. Investors are closely watching market dynamics, wondering if Solana will maintain its resilience in the face of current technical challenges.

Crypto in Peril – US Regional Banks Shake Up the Markets

Markets, including cryptocurrencies, are faltering in the face of risks emanating from U.S. regional banks. The Federal Reserve (FED) keeps rates unchanged at 5.25%, putting pressure on the crypto industry. Investors fear the worsening crisis among regional banks, exposed to pressures from yields lower than current rates. The New York Community Bancorp, after acquiring the crypto-friendly Signature bank, has lost 42% since the end of January, marking a loss of $260 million in Q4 2023.

On his part, BitMEX founder, pro-Ethereum Arthur Hayes, expects an initial negative impact on bitcoin. But a secondary positive effect on cryptos with rising inflation expectations.