Solana shines in the dark: light in the crypto downturn

In the tumultuous arena of the cryptosphere, volatility has struck again. Bitcoin drops to $67,759, Ether to $3,705 and BNB to $572. Despite these setbacks, these cryptocurrencies have recently sparkled. Among the highest-rated assets in the world, Solana seems surprisingly shielded from this sharp decline in prices. But what are the reasons for this sudden turmoil?

In the throes of the crypto market, Solana shines like a beacon

While Bitcoin and Ethereum have been in the limelight, reaching impressive peaks of $73,000 and $4,000 respectively, Solana is not far behind. SOL, ranked among the top five most highly valued assets in the world, has maintained its position, hovering around $140 on March 5th. Its meteoric rise does not seem to want to stop.

$SOL

Solana has rallied +83% since the green area & +29% since Ascending Triangle breakout

Breached $123 resistance as well (black)

Generally, this price action is now looking very similar to mid-2021

The ~$208 resistance may get revisited over time#SOL #Solana #Bitcoin https://t.co/TLmc87rY7q pic.twitter.com/QoWuZw0Vg2

— Rekt Capital (@rektcapital) March 8, 2024

While the cryptocurrency market buckles under the weight of losses, Solana (SOL) stands tall as a green beacon, registering a 6.8% increase in the last 24 hours.

Amidst the turmoil, Solana stands out as the only major cryptocurrency to show gains in the top 10 by market capitalization. In its breakthrough, the SOL crypto now reaches $170.57, according to data from CoinGecko.

The fever of memecoins animates the Solana network

But what explains this spectacular price surge of Solana today? The recent spike in Solana and its notable gains align with the hype surrounding the associated memecoin project, Dogewhatif (WIF), elaborates Cointelegraph.

Supporters of WIF have succeeded in raising $700,000, far exceeding their initial goal of $50,000. With the funds, they emblazoned the token’s logo on the Las Vegas scene. As a result: the price of Dogwifhat (WIF) surged 25%, reaching a historic high of over $3 and a market capitalization of $3 billion following this campaign.

It is noteworthy that Solana’s token price began to rebound shortly after the announcement of the Dogwifhat campaign on March 10th.

Solana bulls have reacted positively to memecoin project launches on its blockchain. A recent study by Franklin Templeton notes that the network has captured a significant portion of activity during the period when BONK, its native memecoin, experienced a price surge in Q4/2023.

Crypto market down: Why this drop?

Why is #Bitcoin down 6.6% today?

We noticed that a #Binance deposit wallet moved 4,637 $BTC($329M) to #Binance hot wallet in the past 24 hours.

Coincidentally, the deposit wallet also moved 4,876 $BTC($319M) to #Binance hot wallet during the $BTC drop on Mar 5. pic.twitter.com/EHEzGwV1U9

— Lookonchain (@lookonchain) March 15, 2024

According to U°Today, the cryptocurrency market is currently going through a period of turbulence, with all major digital currencies showing red. Bitcoin, the leader of this sphere, has fallen by 7% in the last 24 hours. Similarly, Ethereum and XRP have suffered declines of about 7%, while Dogecoin has been the least performing among the top 10 cryptos, losing 9.5% of its value.

This widespread decline can be attributed to significant fund flows to Binance, a crypto exchange currently in turmoil. A notable transaction involving the movement of 4,637 BTC (worth about $329 million) to a hot wallet of Binance was observed, reflecting a similar pattern during the fall of bitcoin on March 5th, thus contributing to the current market volatility.

The recent downturn has led to significant liquidations in the market. In just the last 24 hours, more than $661 million worth of cryptocurrencies have been liquidated, according to CoinGlass. A large portion of these liquidations, amounting to $525.86 million, came from long positions, showing that many traders were betting on a price increase and have been caught off guard.