Popular altcoin Solana is drawing its first “death cross” as SOL has lost 50% in January. According to the analyst, Solana (SOL) looks set to make its first “death cross” this week, raising fears that continued selling will continue into February. Detail cryptocoin.com‘in.
Critical days for this altcoin
According to analyst Yashu Gola, the 50-day exponential moving average of SOL price will eventually close below its 200-day EMA, marking the downtrend typically referred to as the death cross that moves traders. The threat emerges as SOL closes January with a loss of about 50%. As of the last day of the month, the Solana token has slumped by over 2.50% to around $91. Meanwhile, the catalysts behind SOL’s price crash remain pretty much intact. Cryptoassets have slumped this month as traders look to assess how quickly the Federal Reserve will raise benchmark rates from near-zero levels to tame rising inflation and a tighter job market. As a result, Solana reduced half its market capitalization in January from $55.19 billion to $28.79 billion.
As of now, the temporary bullish view of the SOL holds above the possibility of holding above the current support level at $83. A break below the said price floor could see the Solana token find the next opportunity to retrace to $65. Blockasset.co partner Philip Gunwhy continued his long-term bullish in Solana, noting its exponential growth in the decentralized finance (DeFi) and non-refundable token (NFT) sectors, which in turn tends to drive demand for SOL. However, the analyst noted that SOL’s rapid recovery in the short term is dependent on the performance of the broader crypto ecosystem. According to the analyst, the death cross of SOL raises the possibility of its price bottoming out in the coming sessions and then a bullish reversal.
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