MX (mx) 
Strong Downward Momentum Continues for Solana Price
Solana price has continued its downward trend, reaching its lowest level since October 11. The cryptocurrency has dropped to $138, down 53% from its highest level this year.
Technical Analysis Indicates Oversold Condition
According to technical analysis, Solana’s price has moved to its most oversold level since June 2023. The Relative Strength Index (RSI) has dropped to 24, significantly lower than the greedy zone of 73. The RSI is a widely used indicator that measures the rate of change of an asset. Other oscillators, such as the stochastic oscillator and the commodity channel index, also indicate similar trends, with the stochastic oscillator moving to the oversold level of 10.
An oversold period occurs when an asset drops significantly and may be due for a rebound. However, in some cases, an asset may continue falling even when it remains in the oversold zone.
Death Cross Pattern Complicates Solana’s Situation
Solana’s situation is further complicated by the formation of a death cross pattern, as the 200-day and 50-day moving averages have flipped. This pattern often signals further downside, which in this case may bring SOL to the psychological support level of $100.
Top Solana News Driving Price Action
Several important Solana news stories are impacting its price action. These include:
- Binance selling SOL holdings through Wintermute: On-chain data shows that Binance has been selling its SOL holdings through Wintermute, an over-the-counter trading firm, with Wintermute withdrawing $38 million worth of Solana from the exchange.
- Token unlocks: Solana is scheduled to unlock 11.5 million tokens worth almost $2 billion as part of the FTX distributions. Token unlocks can hurt a cryptocurrency by increasing the supply and diluting existing holders.
- Decline of Solana meme coin ecosystem: The Solana meme coin ecosystem has crumbled, with its market cap falling from $25 billion last month to $8.8 billion. Prominent names like Dogwifhat, Fartcoin, and Popcat have all shed billions of value.
- Decline in network activity: Solana’s network activity has declined, with the number of active addresses dropping. Weekly active users have fallen to 81.6 million, down from last year’s high of 135 million. The volume of DEX tokens handled by its protocol has also dropped by over 30% in the past seven days.
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