Solana

Bitcoin

Impact

Drops

<a href="https://cryptoticker.io/en/token/SOL" rel="noopener noreferrer nofollow">Solana's</a> latest July price movements were <a href="https://cryptoticker.io/en/sol-price-prediction-aims-to-100-surge" rel="noopener noreferrer nofollow">highly impressive with new highs never achieved in a long time</a>, and closing in on $200 as well as <a href="https://cryptoticker.io/en/solana-surge-analysis-how-did-solana-take-over-bnb" rel="noopener noreferrer nofollow">surpassing BNB and reaching the 4th rank in Market Cap</a>. However, <a href="https://cryptoticker.io/en/why-crypto-market-down-reasons-bitcoin-price-drop" rel="noopener noreferrer nofollow">starting August, Bitcoin and other Altcoins have seen a harsh drop in prices</a>, with Solana being the most interesting one following the latest highs it has reached. So, understanding the factors behind this SOL price crash is crucial for those invested in or considering investing in Solana. This article delves into the reasons behind Solana's price decline, analyzes the current market sentiment, and provides insights into what <a href="https://cryptoticker.io/en/prediction/solana-price-prediction" rel="noopener noreferrer nofollow">the future might hold for this prominent cryptocurrency</a>.
<figure class="image"><img src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/By_Trading_View_SOL_Price_Performance_24h_21036429de.png" alt="By TradingView - SOL Price Performance (24h)">
 <figcaption><a href="https://www.tradingview.com/markets/cryptocurrencies/prices-all/?aff_id=127958" rel="noopener noreferrer nofollow">By TradingView - SOL Price Performance (24h)</a>
 </figcaption>
</figure>
<h2 id="strong-solana-drops-by-over-10-why-did-sol-price-crash-strong">Solana Drops by Over 10%: Why Did SOL price crash?</h2>
On August 1st, 2024, <a href="https://www.bitget.com/spot/SOLUSDT?vipCode=94qs" rel="noopener noreferrer nofollow">Solana price</a> experienced a dramatic price drop of over 10%, trading around $150. Several factors contribute to this significant decrease:
<figure class="image"><img style="aspect-ratio:1534/777;" src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/SOLUSD_2024_08_03_5_D_fc9d4cc158.png" alt="By TradingView - SOLUSD_2024-08-03 (5D)" width="1534" height="777">
 <figcaption><a href="https://www.tradingview.com/symbols/SOLUSD/?aff_id=127958" rel="noopener noreferrer nofollow">By TradingView - SOLUSD_2024-08-03 (5D)</a>
 </figcaption>
</figure>
<ul>
 <li>Centralization Concerns: Solana, despite its reputation for speed and efficiency, has faced criticism for its high centralization. This centralization makes the network vulnerable to attacks and outages, affecting investor confidence.</li>
 <li>Decreasing DApp Usage: Decentralized applications (DApps) are vital for the Solana ecosystem, driving user activity and network engagement. A decline in DApp usage indicates a potential loss of interest or trust, contributing to the price drop.</li>
 <li>Waning Interest from Derivatives Traders: Derivatives like futures and options are commonly used by traders to speculate on price movements. A decrease in interest in these products suggests that traders might be expecting further declines in Solana’s price.</li>
 <li>Technical Resistance: SOL has faced multiple rejections around the $190 mark. These failed attempts to break resistance have led to a contraction of the Bollinger Bands and a subsequent drop below average price levels.</li>
</ul>
<h2 id="strong-solana-s-price-performance-and-market-sentiment-strong">Solana’s Price Performance and Market Sentiment</h2>
As of now, <a href="https://www.tradingview.com/symbols/SOLUSD/?aff_id=127958" rel="noopener noreferrer nofollow">SOL price</a> is trading near $150, with a downside momentum of over 8% in the last 24 hours. <a href="https://www.coinbase.com/learn/advanced-trading/what-is-open-interest-in-crypto-trading#:~:text=Open%20Interest%20(OI)%20is%20a,traders%20in%20understanding%20market%20trends." rel="noopener noreferrer nofollow">Open interest (OI)</a> in SOL has also dropped by more than 8%, indicating fear and reduced interest among traders and investors. This sentiment has resulted in significant liquidations:
<ul>
 <li>Liquidation Overview: In the past 24 hours, traders have liquidated over $22.44 million in long and short positions, with long positions making up the majority of these liquidations due to the bearish market.</li>
</ul>
<h2 id="strong-solana-price-breaks-support-levels-strong">Solana Price Breaks Support Levels</h2>
On August 3, 2024, Solana (SOL) witnessed another significant decline of over 8% within 24 hours, breaking through the critical support level of $157. This breach has turned market sentiment bearish, with SOL heading towards the $125 mark. Several factors are at play:
<ul>
 <li>Support Level Breakdown: The breakdown of the $157 support level has led to increased bearish sentiment, pushing SOL towards lower levels.</li>
 <li>Impact of Major Cryptocurrencies: The negative performance of major assets like Bitcoin (BTC) and Ethereum (ETH) has also influenced SOL price crash.</li>
</ul>
<figure class="image"><img style="aspect-ratio:1534/777;" src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/SOLUSD_2024_08_03_af5ba138eb.png" alt="By TradingView - SOLUSD_2024-08-03" width="1534" height="777">
 <figcaption><a href="https://www.tradingview.com/symbols/SOLUSD/?aff_id=127958" rel="noopener noreferrer nofollow">By TradingView - SOLUSD_2024-08-03</a>
 </figcaption>
</figure>
<h2 id="strong-solana-price-prediction-strong">Solana Price Prediction</h2>
Despite the massive liquidations, the upcoming critical levels for <a href="https://cryptoticker.io/en/token/SOL" rel="noopener noreferrer nofollow">SOL price</a> are $146 on the lower side and $162 on the higher side. Market sentiment will play a key role in determining whether SOL continues to drop or experiences a recovery. Technical analysis provides further insights:
<ul>
 <li>Bearish Signals: Expert technical analysis shows SOL breaking below the crucial support and the 200 Exponential Moving Average (EMA) on a 4-hour time frame, indicating potential bearishness.</li>
 <li>Potential Support Levels: Historical data and price momentum suggest that SOL could reach $143 and $125 levels in the coming days, which are expected to act as support.</li>
</ul>
<figure class="image"><img style="aspect-ratio:1755/832;" src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/By_Trading_View_SOL_Overall_Performance_800352b773.png" alt="By TradingView - SOL Overall Performance" width="1755" height="832">
 <figcaption><a href="https://www.tradingview.com/markets/cryptocurrencies/prices-all/?aff_id=127958" rel="noopener noreferrer nofollow">By TradingView - SOL Overall Performance</a>
 </figcaption>
</figure>
<h3 id="strong-what-s-next-for-solana-strong">What’s Next for Solana?</h3>
The recent drop in <a href="https://www.tradingview.com/symbols/SOLUSD/?aff_id=127958" rel="noopener noreferrer nofollow">Solana price</a> can be attributed to concerns about centralization, decreasing DApp usage, waning interest from derivatives traders, and technical resistance levels. The breach of crucial support levels and bearish market sentiment further exacerbate the situation. However, technical improvements and renewed investor interest could potentially reverse this trend. Investors should closely monitor these developments and market sentiment to make informed decisions.

Solana Price Crash: Why Is Solana Price Crashing Hard?

Table of Contents

CryptoTicker ENG

Other articles published on Aug 3, 2024

Bitcoin: The network difficulty reaches an unprecedented level

Akash Network Continues To Lose: Analysts Still Remain Hopeful

Morgan Stanley’s New Policy: Bitcoin ETFs for Eligible Clients

FTX’s Secret Solana Holding: 8% of Supply in Hidden Wallets

Shibarium’s Future Success: Key Reasons Revealed by the SHIB Team

Binance CEO CZ Followed an Account Linked to This Altcoin While in Prison

Join our free newsletter for daily crypto updates!