Solana price downfall prolonged into Friday’s trading session, registering a 4% intraday loss to reach $136.5. The selling pressure in the altcoin market persists as Bitcoin price struggles to sustain above $60000. Will sellers strengthen their grip in the coming September?
Solana Price to Retest Key Support Amid Launch of Liquid Staking Tokens
The Solana ecosystem is seeing renewed interest in staking and re-staking activities, with major exchanges launching new liquid staking tokens to cater to growing demand. Recently, the crypto exchange ByBit announced the upcoming launch of bbSOL, a liquid staking token. This move allows users to stake SOL tokens on Bybit Web3 and receive bbSOL tokens in return.
Despite the announcement, the Solana price plunged below the 200-day Exponential moving average (EMA) on Thursday.
Liquid staking enables users to earn token rewards while helping platforms maintain liquidity, creating a mutually beneficial scenario. Stakers can leverage these reward tokens in other DeFi applications without needing to un-stake.
In addition to Bybit’s initiative, other prominent crypto exchanges like Binance and Bitget are likely to launch their own staking tokens, BGSOL and BNSOL, respectively. Introducing these tokens will promote staking participation in Solana Network, boosting its security and overall ecosystem health.
Thus, this development could have a long-term and gradual impact on Solana price rather than an immediate effect.
SOL Price Hints Immenint Rebound with Flag Formation
The Solana price, falling for six consecutive days, has plunged from $162 to $136, accounting for a 15.8% loss. The bearish turnaround signals the continuation of the sideways trend within a flag pattern of the daily chart.
Typically, the pattern drives a temporary consolidation between two trendlines for the prevailing trend to recuperate the bullish momentum. If the pattern holds true, the SOL price is poised for a 30% rally to $180 before the crucial breakout from the overhead trendline.
However, the relative strength index plunged 40%, indicating that sellers are the dominant force in the current market.
If the market correction persists, the Solana price prediction hints at a 10% fall to retest the $121 multi-month support, followed by the flag’s lower trendline.
Frequently Asked Questions (FAQs)
The launch of liquid staking tokens such as bbSOL, BGSOL, and BNSOL by major exchanges could have a gradual and long-term positive impact on Solana’s price
The key support level for Solana is $120, which could be retested if the market correction persists.
Solana’s price is consolidating within a flag pattern, indicating a potential 30% rally to $180 if the pattern holds true
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/solana-price-150-liquid-staking-tokens-listings/
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