- Solana drags the extreme volatility into the new week as losses return to $140.
- Ethereum loses more ground following last week’s rejection from highs above $3,600.
Cryptocurrencies are back on the drawing board after starting the week while nursing. As reported, Bitcoin plunged from highs almost at $49,000 and tested support at $45,000. Ethereum is back to trading below $3,200 while Ripple is teetering below $1.
Solana is the most affected crypto asset in the top ten after posting double-digit losses. Cardano is down 8.8% to trade at $2.15, according to live price data by CoinGecko.
Solana has been highly volatile in the last couple of weeks. Initially, this Ethereum rival exploded to a new all-time high of around $215. However, a widespread crash in the market resulted in massive losses testing $150.
Subsequently, losses continued last week after Solana suffered a blockchain hitch causing it to stay offline for several hours. Volatility surged as dropped to test close to $132.
Nonetheless, Solana currently enjoys institutional and retail investors who keep taking advantage of the dips to buy more SOL tokens. Hence, the smart contract token sprung up to highs slightly above $170. The 61.8% Fibonacci level limited the price action, resulting in the most recent correction to $140.
Solana is trading at $144 at writing as bulls attempt to push the price upward. Its immediate upside is capped at the 38.2% Fibonacci level, while more resistance is expected at $160, as highlighted by the 50% Fibo.
Note that the downtrend has more weight at the moment, as reinforced by the Moving Average Convergence Divergence. Therefore, another four-hour close below the 38.2% Fibo would trigger more sell orders and perhaps push Solana to the 200 SMA near $120.
SOL/USD Four-Hour Chart
Ethereum extended the correction from last week’s highs above $3,600 to areas slightly below $3,200. The declines in tandem with the rest of the market, with Bitcoin dropping to $45,000. Several tentative support areas did little to halt the spiral and seem to have flipped into crucial resistance zones.
Meanwhile, Ethereum is trading at $3,201 as bulls renew their strength to push for gains above $3,400, a hurdle formed by the 200 SMA and the 50 SMA on the four-hour chart.
ETH/USD Four-Hour Chart
The MACD will have to flip bullish in the coming sessions to validate the recovery attempt. In the meantime, prevailing overhead pressure cannot be ignored.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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