Solana ($SOL) has seen its price plummet by 24% in the past ten days as crypto traders have become increasingly bearish on the token’s prospects.
The massive sell-off of $SOL has halted the token’s prolonged uptrend that began in mid-June.
As such, traders appear to be shifting their focus to BTC20 ($BTC20) – a brand-new presale project offering enticing staking rewards and an eco-friendly approach.
$SOL Price Chart Flashes Warning Signs as Token Nears Vital EMA
At the time of writing, the Solana price is hovering around $24.53 – and has closed in the red in five of the last eight days.
As evident from the daily price chart, $SOL peaked at the $32.00 level on July 14 before it began a sustained downtrend that continues to the present day.”
This downtrend means that $SOL is nearing the 20-day Exponential Moving Average (EMA) – a crucial metric for identifying a token’s short-term trend.
If $SOL were to dip below this EMA, it could signal further downside for the token in the short term.
However, Solana bulls will be hoping that the 20-day EMA holds as support since this could provide the impetus needed for a reversal.
This scenario seems viable, given that CoinGecko sentiment analysis reveals that 67% of the community is still “feeling good” about Solana’s prospects.
Additionally, the Crypto Fear & Greed index is still in “Greed” territory – hinting that Solana’s ongoing woes may be temporary.
Solana Price Slide – What Has Caused the Sell-Off?
So, why has Solana’s price been sliding?
The most obvious reason lies in the token’s technical indicators. On July 14, just before $SOL’s drastic decline, the Relative Strength Index (RSI) reached 82.70 – significantly into “overbought” territory.
When a token is in overbought territory, it indicates a high chance that profit-taking will ensue, which appears to be what has happened with Solana.
Unfortunately, Solana’s sell-off intensified as more traders became aware of the price dip, resulting in a negative feedback loop that prompted even more traders to liquidate their holdings.
In addition, market sentiment surrounding Solana continues to be undermined by regulatory concerns.
In early June, the SEC, in its lawsuits against Binance.US and Coinbase, categorized Solana as security – a claim that the SOL Foundation vehemently denied.
Unfortunately, this statement by the SEC has cast a shadow of uncertainty over the future of Solana.
Thus, despite Solana’s robust technology and growing ecosystem, until these regulatory challenges are cleared, the token’s price may continue to be affected by fears around its legal status in the US.
Which Tokens Are Traders Backing to Outperform Solana?
As Solana struggles with technical and regulatory issues, traders have started looking at alternatives they believe have more upside potential.
One such token rapidly gaining traction is BTC20 – a brand-new ERC-20 token designed to provide attractive staking rewards.
BTC20 Presale Causes Buying Frenzy as Traders Snap Up Bitcoin-Inspired Stake-to-Earn Token
BTC20 ($BTC20), despite being new to the crypto scene, has already attracted significant attention from the trading community.
The project’s presale has become an instant hit with investors, raising over $1.5 million in less than two weeks.
This has established BTC20’s credibility in the saturated crypto market and demonstrated the growing hype around the token ahead of the planned exchange listings once the presale concludes.
Much of this hype is driven by BTC20’s innovative stake-to-earn mechanism, designed to incentivize long-term holding of $BTC20 by rewarding participants with additional tokens over time.
Per BTC20’s whitepaper, this mechanism also uses a Proof-of-Stake (PoS) setup – making it far less energy intensive than Bitcoin mining (and better for the environment).
Adding to BTC20’s growing appeal is the fact that the token is built on the Ethereum blockchain, opening doors to potential integration with thousands of decentralized applications (dApps).
These factors have combined to cause a stir in the BTC20 Telegram community, with early investors eager to see how the token performs on the open market.
All in all, with $BTC20 available through the presale for just $1 and over half of the presale supply already snapped up, the signs are strong that this token could be a potential game-changer worth keeping an eye on.
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