2025-01-27 14:30:00 by BeInCrypto

Solana (SOL) has been on a downward trend since reaching an all-time high of $295.83 on January 19. The altcoin currently trades at $226, declining 23% from its peak. With the bears regaining market control, SOL faces increasing selling pressure and waning demand. Solana Demand Wanes as Meme Coin Hype Dwindles The significant surge in the demand for the Solana-based meme coin TRUMP pushed SOL to a new all-time high of $295.83 on January 19. However, following Donald Trump’s January 20 inauguration and the launch of the MELANIA meme coin, TRUMP’s trading activity faded gradually. This resulted in a dip in activity on the Solana network, which has impacted SOL’s performance. SOL trades at $226 as of this writing, noting a 9% decline over the past 24 hours. This has pushed its price below the 20-day Exponential Moving Average (EMA), a key indicator of weakening momentum.  SOL 20-Day EMA. Source: TradingViewThe 20-day EMA measures an asset’s average price over the past 20 trading days, giving more weight to recent prices to highlight short-term trends. When an asset’s price falls below this key moving average, it signals a shift in momentum to the downside, suggesting a weakening of the uptrend amid increased selling pressure. In addition, the setup of SOL’s Moving Average Convergence Divergence (MACD) indicator supports this bearish outlook. At press time, SOL’s MACD line (blue) is poised to break below its signal line (orange). When an asset’s MACD is set up this way, it suggests a bearish crossover, indicating that selling momentum is building, hinting at a sustained price drop.  SOL MACD. Source: TradingViewSOL Price Prediction: A Dip Below $210 Is Imminent If SOL’s selling pressure strengthens, readings from its Fibonacci Retracement tool indicate that its price could fall below $210 to trade at $202.73. SOL Price Analysis. Source: TradingViewOn the other hand, a surge in new demand for the altcoin will invalidate this bearish projection. In that case, Solana’s price could attempt to reclaim its all-time high. Disclaimer In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated. Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment... Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment... READ FULL BIO