Piece by piece, Solana is falling apart- may suffer further losses

• Solana lost $ 1 billion in USDT to Ethereum due to chain swap.
• It is among the biggest losers in the FTX crash, with 45.6% lost.
• Recent epoch may further push it down.

Solana took its share of the recent debacle and lost almost 51% of its value since the genesis of the crunch. SOL’s staking lock-in period at the current epoch will end in less than a day, and SOL tokens worth $18 million will flood the market. 

Amid all this, Tether announces to perform a chain swap, converting $1 billion USDT from Solana to the rival of Solana, Ethereum. The news dropped at the wrong time, as Solana was already knee-deep in the pothole, pushing it further down. 

Based on the Solana blockchain, tether (USDT) and the leading stablecoin (USDC) were briefly removed from Binance. Many other exchanges stated that they would stop supporting USDC and USDT on Solana. 

The price is forming a bearish pennant and aiming to dip to $7.80. The price has dropped far below the 20-EMA and may drop further. It also witnesses falling trading volumes, but once the epoch is executed, it may witness bulky sell-offs. Since the FTX fiasco. Prominent cryptocurrencies across the board have seen sell-offs, but SOL has taken an unfair impact. 

The market is facing a crisis-like situation, with prices planning to fall and form lower lows. The CMF indicator strongly indicates the ongoing as well as upcoming downtrend. It may move similarly, respecting the downtrend. The MACD indicator is strongly bearish and is on the edge of convergence. It may converge but will remain bearish until the bears take over fully. The RSI indicator is at the edge of over-sales. It may float around the same bounds and keep dipping. 

The price continues to form the pennant, indicating the future free fall. The CMF indicator remains below the 0-mark and floats within those bounds only. It may go down beyond the -20 mark due to the tokens flooding the market. The MACD indicator tangles and goes akin to each other. Soon it may diverge in bearish form and record voluminous histograms for sales. The RSI indicator moves in the 30-40 mark but is on the edge of being oversold. It may move beyond the bounds and mark the sell-offs of the token.  

Conclusion

Solana is the worst hit by the shockwaves of the FTX catastrophe. Before it could overcome the previous trauma, newer tragedies bombard the market for SOL, burning the bridge, and the only way out is to fall. The epoch and the chain swap may have a wrecking effect on the token. Investors are not ready for another crash and may initiate a mass sell-off if SOL fails to manage the situation.

Technical levels

Support levels: $11.62 and $7.80

Resistance levels: $35.00 and $43.15

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)