Gate (gt) 
Solana Price Enters Bear Market Amid Crypto Sell-Off
The price of Solana (SOL) has plummeted, pushing the cryptocurrency into a technical bear market following the Federal Reserve’s recent hawkish decision. As the fifth-largest cryptocurrency, Solana has dropped to the psychologically significant support level of $200.
Technical Analysis Points to Potential Rebound
According to the daily chart, Solana’s price has formed several bullish patterns, indicating a potential rebound in the coming days. One such pattern is the falling wedge chart pattern, characterized by two converging and falling trendlines. Historically, this pattern has led to a strong bullish breakout when the trendlines approach their confluence point.
Additionally, Solana’s price has formed a break and retest pattern by moving to the support level of $203. This pattern is often a sign of continuation, as it involves an asset rising above a key resistance level and then retesting it. In this case, $203 was a notable level, having been near the highest point in March this year and aligning with the inverse head and shoulders pattern.
Solana remains above its 100-day and 200-day Exponential Moving Averages and the major support and resistance level of the Murrey Math Lines. This suggests a likelihood of the SOL coin bouncing back and experiencing a significant upswing. If this occurs, the initial target to watch will be $263, its highest swing last month. A break above this level could lead to further gains, potentially reaching $300.
Solana’s Strong Fundamentals
Beyond its technical analysis, Solana’s price is also supported by strong fundamentals. The network has become a significant threat to Ethereum, attracting developers and users. According to recent data, Solana had over 5.1 million users in the last 24 hours, surpassing Ethereum’s 441,000 and Tron’s 2.4 million.
Solana has also generated substantial fees this year, with over $700 million in fees. Although this is lower than Ethereum’s $2.42 billion, it is essential to note that Solana is known for its lower fees.
The Solana ecosystem has become a dominant player in the meme coin industry, with its ecosystem tokens accumulating a market capitalization of over $20 billion. Additionally, Solana has a significant presence in the Decentralized Public Infrastructure industry through platforms like Helium.
A potential catalyst for Solana’s growth is the rising hope that the next Securities and Exchange Commission will approve a spot Solana ETF. Despite Gary Gensler’s SEC rejecting such an ETF, citing SOL as a security, Paul Atkins may decide to approve mainstream coins.
For more news and updates on the cryptocurrency market, visit Global Crypto News.
