- The Solana price continued to drop as its bearish run extended to the ongoing session.
- SOL had posted a marginal recovery on Wednesday but fell back on Thursday by almost 7%.
The Solana price continued to drop as sellers pushed SOL below $180 as its bearish week continued. SOL had started the week mired in the red, falling by 1.39% on Monday. The price continued to drop on Tuesday, falling to $190.39 after dropping by almost 2%. However, Wednesday saw SOL recover as the price pushed up by over 2% and settled at $194.85. However, the price fell back on Thursday and dropped by almost 7%, dropping to $181.
Solana Price Analysis: Sellers Look To Push SOL To $175
The Solana price started the previous week by registering an increase of 1.71% on Monday. Tuesday saw SOL push above the 50-day SMA, settling at $208.87. On Wednesday, SOL continued to push up, breaking past the 20-day SMA and settling at $229.85, before another marginal increase on Thursday saw SOL rise to $233.78. However, after reaching this level, the price fell back significantly, dropping by over 9% on Friday, slipping below the 20-day SMA and settling at $212. On Saturday, the price continued to drop as sellers pushed the price below the 50-day SMA to $201.
Image: SOL/USD daily
The Solana price saw no respite on Sunday, as it dropped by 2.18% on Sunday, dropping below $200 to $196.71. SOL continued to drop on Monday, falling by 1.39%, with a drop of 1.85% on Tuesday, taking the price to $190.39. SOL did recover on Wednesday, as it rose by 2.34% but fell back on Thursday, falling by almost 7% and settling at $181.27. The current session sees SOL down to $178, with sellers looking to push the price lower.
The Parabolic SAR is currently bearish, indicating that the price could drop lower.
Image: SOL/USD 4-hour
Looking at the Solana price chart, we can see that SOL had dropped considerably on the 4th, falling below all three SMAs and settling at $188.49. The price pushed up from this level, rising to $207.31, but fell back to $181.01, thanks to the 50-bar SMA acting as resistance. SOL was able to push past the 20-bar SMA on the 7th, rising to $203.42, but again could not push past the 50-bar SMA and dropped back below the 20-bar SMA to $187.04. With the 20-bar SMA now acting as resistance, SOL could not move past this level and fell back to its current level of $179.
We can see that the MACD has flipped to bearish, indicating that we could see the price drop further.
A Look At Solana’s Secretum
Crypto asset trading has continued to skyrocket in 2021, hitting new and unprecedented records. Trading volumes reached $3.8 trillion in April 2021 when bitcoin hit its all-time high.
Between August 2020 to 2021, the traded value on large decentralized exchanges like Curve, Uniswap, and PancakeSwap grew by about 550%. Major centralized exchange (CEX) Binance’s spot cryptocurrency trading volumes totaled $789 billion in September, versus $454 billion (€390.7 billion) in July, while derivatives volumes jumped almost 25% to $1.7 trillion.
One of the drivers of this trend is the perceived superiority of DEX on many fronts. DEXs replace a centralized authority with automated protocols that enable trading and direct swapping of tokens, while CEX users give up control of their assets to the exchange’s servers.
DEXs provide users with full control of their assets and eliminate jurisdictional constraints. DEXs generally have lower trading fees compared to CEXs.
Despite their ongoing success, DEXs are still affected by a series of significant challenges. They operate on smart contracts only, limiting their trading capabilities.
Most DEXs offer limited liquidity. Therefore, asset prices are often priced inefficiently. Transaction speeds may be slow as they need to be checked and validated on a blockchain network by the network’s miners, not the exchange. Most DEX platforms are considered to be not user-friendly.
Solana Price Is Expected To Reach These Levels
Looking at the Solana price, we can see that SOL has been extremely bearish since the market crash. With the price slipping below $180 during the ongoing session, we could see the price fall to $175.