Boost

Future

Solana

Impact

<a href="https://cryptoticker.io/en/token/SOL">Solana (SOL)</a> has been under intense scrutiny in recent weeks, with its price displaying significant volatility. While the cryptocurrency has struggled to maintain its value, dropping below key moving averages, recent developments in Solana's ecosystem, particularly with <a href="https://coinmarketcap.com/community/en/articles/66d17d0f8f1a5a7d0aceac57">major exchanges' introduction of Liquid Staking Tokens (LSTs)</a>, have sparked renewed interest. This article explores Solana’s current market challenges and the potential impact of these new products on its future trajectory.
<h2 id="strong-solana-price-analysis-sol-price-faces-bearish-pressure-below-key-averages-strong">Solana Price Analysis: SOL Price Faces Bearish Pressure Below Key Averages</h2>
Over the past month, the Solana price has seen a 25% decline, falling below crucial support levels. The cryptocurrency’s inability to stay above its 20-day <a href="https://www.investopedia.com/terms/e/ema.asp">Exponential Moving Average (EMA)</a> and 50-day <a href="https://www.investopedia.com/terms/s/sma.asp">Simple Moving Average (SMA)</a> has significantly contributed to the bearish sentiment. These moving averages typically act as resistance levels in a downtrend, and the failure for <a href="https://www.bitget.com/spot/SOLUSDT?vipCode=94qs">SOL price</a> to maintain its price above them signals strong selling pressure.
<figure class="image">
 <img style="aspect-ratio:1534/777;" src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/SOLUSD_2024_08_30_1_M_1d137d3bbc.png" alt="By TradingView - SOLUSD_2024-08-30 (1M)" width="1534" height="777">
 <figcaption>
 By TradingView - SOLUSD_2024-08-30 (1M)
 </figcaption>
</figure>
As of August 27, <a href="https://www.tradingview.com/symbols/SOLUSD/?aff_id=127958">SOL price</a> was trading at $137.86, with its 20-day <a href="https://www.investopedia.com/terms/e/ema.asp">EMA</a> at $147.72 and its 50-day <a href="https://www.investopedia.com/terms/s/sma.asp">SMA</a> at $155.74. The brief attempts to rally above these averages were short-lived, with profit-taking quickly driving the price back down. Additionally, the <a href="https://www.investopedia.com/terms/r/rsi.asp">Relative Strength Index (RSI)</a> of SOL price has been trending downward, currently at 40.89, indicating further weak buying interest.
<figure class="image">
 <img style="aspect-ratio:1534/777;" src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/SOLUSD_2024_08_30_3_M_1cbb23b39a.png" alt="By TradingView - SOLUSD_2024-08-30 (3M)" width="1534" height="777">
 <figcaption>
 By TradingView - SOLUSD_2024-08-30 (3M)
 </figcaption>
</figure>
The sentiment in the futures market also reflects this bearish outlook, as traders have increasingly taken short positions. With a negative funding rate since August 28, the market seems to anticipate further declines, potentially driving the SOL price down to $133.64 or even $110 if negative sentiment persists.
<h2 id="strong-positive-solana-news-major-exchanges-introduce-solana-based-liquid-staking-tokens-strong">Positive Solana News: Major Exchanges Introduce Solana-Based Liquid Staking Tokens</h2>
Despite the bearish trends, recent developments have injected some optimism into the Solana ecosystem. Three major crypto exchanges—Binance, Bybit, and Bitget—have teased the launch of new Solana-based products, sparking excitement within the crypto community. These products, expected to be <a href="https://academy.binance.com/en/glossary/liquid-staking-token-lst">Liquid Staking Tokens (LSTs)</a> named #BNSOL, #bbSOL, and #BGSOL, are designed to allow users to stake their tokens while maintaining liquidity for other decentralized finance (DeFi) activities.
The introduction of LSTs could significantly impact Solana’s price and market sentiment. These tokens offer investors the flexibility to earn staking rewards without the need to unstake their tokens, thus promoting liquidity and potentially attracting more participants to the Solana ecosystem. The announcement has already led to a price surge in SOL, albeit temporary, with the price reaching $147 before retracing.
<h2 id="strong-potential-impact-on-solana-s-future-strong">Potential Impact on Solana’s Future</h2>
The launch of these LSTs by major exchanges could serve as a catalyst for Solana's price recovery and broader adoption. While the immediate market reaction has been mixed, with some cautious about SOL's short-term performance, the long-term outlook appears more optimistic. If these staking products gain traction, they could provide the necessary boost for Solana to break out of its current downtrend and target new price heights.
<figure class="image">
 <img style="aspect-ratio:1851/831;" src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/By_Trading_View_Solana_Overview_Performance_544bf529f9.png" alt="By TradingView- Solana Overview Performance" width="1851" height="831">
 <figcaption>
 <a href="https://www.tradingview.com/markets/cryptocurrencies/prices-all/?aff_id=127958">By TradingView- Solana Overview Performance</a>
 </figcaption>
</figure>
However, the current market environment remains challenging. Solana must overcome its existing bearish pressure and sustain its price above key support levels to regain investor confidence. The next few weeks will be crucial in determining whether the introduction of LSTs can indeed help Solana recover and thrive in a competitive crypto market.

Solana Price Analysis: Can New LSTs Boost SOL Price Up?

Table of Contents

CryptoTicker ENG

Other articles published on Aug 30, 2024

[NEOPIN 3.0 Guide] RWA INDEX(APP)

Become a Dogecoin VIP: Reap Big Gains from the Free Dogecoin Airdrop Today!

Bridge Raises $58 Million for Stablecoin Network

Report Highlights Employment Challenges in Paraguayan Bitcoin Mining Industry

China Recognizes "Virtual Asset" Transactions in New AML Law Interpretation Amid Crypto Unban Rumors

Singapore Bags Top Spot in Global Cryptocurrency Adoption

Join our free newsletter for daily crypto updates!