🌎 Solana and JasmyCoin Drop Amid Crypto Market Sell-Off

Solana, JasmyCoin, and other altcoins experienced a significant sell-off this week, coinciding with a drop in the crypto fear and greed index.

Solana and JasmyCoin in Bear Market

JasmyCoin (JASMY) fell to $0.01717, marking a decline of over 58% from its peak this year, reducing its market cap to $908 million. Solana (SOL), the fifth-largest cryptocurrency, dropped to the $120 support level, much lower than its year-to-date high of $209. This trend mirrors Bitcoin’s fall from over $73,800 in March to $54,000.

Challenges in Solana’s Ecosystem

Solana’s ecosystem is facing challenges. Pump.fun, its meme coin generator, is contending with competition from the newly launched SunPump. Data indicates that SunPump has collected over $25 million in fees within a few weeks, with tokens in its ecosystem valued at over $428 million. In comparison, Pump.fun tokens boast a market cap of over $487 million, generating more than $140 million in fees nine months post-launch. Tron is catching up rapidly.

Additionally, Tron has surpassed Solana in terms of total value locked (TVL) in the DeFi sector, holding over $7.69 billion in assets compared to Solana’s $4.60 billion. Solana possesses over $3.6 billion in stablecoins, predominantly USD Coin (USDC), while Tron has $60 billion.

Technical Indicators for Solana

There are indications that Solana is losing momentum. The token has formed a triple-top chart pattern, a common bearish signal. Notably, it is on the brink of forming a death cross pattern as the 200-day and 50-day moving averages approach a crossover. The gap between the two moving averages has decreased from 13% in August to 3.70%. This pattern could lead to further downside, with the initial target being the previous month’s low of $110.

JasmyCoin’s Performance

JasmyCoin, a Japanese cryptocurrency, also retreated despite Mitsubishi UFJ, Mizuho, and SMBC announcing their entry into the crypto industry through stablecoin transfer tests. Generally, JasmyCoin tends to rise when significant crypto-related news emerges from Japan.

Similar to Solana, the spread between JasmyCoin’s 200-day and 50-day moving averages has narrowed, increasing the likelihood of a death cross formation. JasmyCoin experienced a golden cross — the opposite of a death cross — in November 2023, resulting in a 788% rally. If the death cross occurs, the token may continue to decline in the coming months.

Potential Crypto Winter

A significant risk for Solana, JasmyCoin, and other altcoins is the possibility of entering a prolonged crypto winter. The previous crypto winter lasted from November 2021 to January 2023.