Latest Solar (SXP) Price Analysis

Deep Dive

1. Exchange Investment Warning (Bearish Impact)

Overview: On January 26, 2026, the Digital Asset eXchange Alliance (DAXA) – representing Upbit, Bithumb, and Coinone – issued an official investment warning for SXP (CoinMarketCap). The action was based on a review that identified issues with the project's technical progress, business model sustainability, and regulatory compliance. Upbit immediately halted deposit services for SXP pairs.

What this means: This coordinated move by major regulated exchanges is a severe blow to investor confidence. It directly reduces liquidity and accessibility, forcing risk-averse holders to sell. The project now enters a 30–90 day monitoring period, creating sustained uncertainty and downward pressure until concrete improvements are demonstrated.

What to look out for: Any official response or improvement plan from the Solar team to address DAXA's concerns within the monitoring window.

2. Oversold Technical Bounce (Mixed Impact)

Overview: Following the sharp decline, SXP's 14-day RSI reached 24.11, deep into oversold territory (below 30). The current 24h price increase, on high volume, aligns with a typical technical rebound as short-term traders buy at perceived lows.

What this means: This bounce is more indicative of a temporary pause in selling rather than a reversal of the bearish trend. The price remains far below all key moving averages (e.g., the 30-day SMA at $0.064), confirming the broader downtrend is intact. Such moves can be fragile if negative fundamentals persist.

Conclusion

The recent minor gain is a technical correction within a powerful downtrend driven by a critical regulatory warning from Korean exchanges. For holders, the dominant narrative remains one of elevated risk until the project proves its long-term viability to regulators.

Key watch: Will the Solar project submit a satisfactory improvement plan to DAXA before the monitoring period ends, potentially stabilizing the price?

Deep Dive

1. Technical Rebound (Mixed Impact)

Overview: SXP’s 7-day RSI hit 18.83 on January 27, 2026 – its most oversold level since March 2025. The bounce aligns with Fibonacci support at $0.0439 (swing low) and a MACD histogram nearing a bullish crossover.
What this means: Oversold conditions often attract tactical traders, but the 200-day EMA at $0.1283 remains a distant resistance. Weak momentum (RSI14: 28.71) suggests this is a relief rally, not trend reversal.
What to watch: A close above the 7-day SMA ($0.0576) could signal further upside, while failure to hold $0.0439 risks new lows.

2. Volume-Driven Volatility (Bearish Catalyst)

Overview: Trading volume surged to $218.8M (369% increase), exceeding SXP’s $31.1M market cap by 7x – a classic sign of speculative churn.
What this means: High turnover (7.04x market cap) indicates weak holder conviction. Similar volume spikes preceded drops of 13-21% in December 2025 and January 2026.

3. Regulatory Overhang (Bearish Structural)

Overview: Upbit, Bithumb, and Coinone issued investment warnings on January 26, citing concerns about SXP’s development progress and compliance – a move historically preceding delistings in 60% of cases (DAXA).
What this means: While no new warnings emerged in the past 24h, the 30-90 day monitoring period creates lingering uncertainty.

Conclusion

The 2% gain appears driven by technical factors and fleeting speculation, not fundamental improvements. With exchange delisting risks unresolved and RSI still below 30, traders should treat this as a volatility spike within a dominant downtrend (-59.87% YTD).

Key watch: Can SXP hold above the critical $0.0439 Fibonacci level, or will DAXA’s monitoring updates reignite selling pressure?