Solana price has hit a two-week low on Wednesday morning, as it lost 2.96% of its value in 24 hours to trade at $212.25. Solana effectively slipped out of its recent uptrend when it breached the support at the $220 mark.
The move signals that SOL has joined the crypto market bandwagon on its way down. It also brings to a pause Solana’s attempt to displace BNB coin from the third position in the cryptocurency market ranking. While it has shown signs of stability, Solana has struggled in recent days, losing 11% of its value over the last seven days.
Despite its failed attempt at the number three spot, many analysts opine that Solana has the right fundamentals and background to do it. Institutions have also taken notice of its potential as an investment asset. The move by Bloomberg Terminal to make SOL only the third cryptocurrency tracked by the terminal indicates strong institutional affinity towards it.
SOL now joins Bitcoin and Ethereum as the only other crypto assets on the platform. Therefore, even as the crypto market corrects, more investors are likely to keep their eyes on Solana. Following its proof of credibility as a potential threat to Ethereum, SOL could be among the fastest coins to rise back up.
Solana price has broken below its recent uptrend as shown on the chart below. This is a strong signal that the market is on a reversal. The RSI is currently at 47, which signals that the buying momentum has weakened significantly. If the bears take charge of the market, they are likely to pull the price down, with the first support at $202.26. If the momentum weakens further, the support could shift to $190.56.
For SOL to stand a chance of making gains, the momentum needs to sustain the price above $210. The 10-EMA is still above the 20-EMA, which means that the momentum could support upward action. If the buying momentum improves, the price is likely to rise, with the first resistance at $222.19 and the second one at $232.76.