Keep an Eye on Solana (SOL) Despite Bearish Mood: Here’s Why

Solana (SOL) is trading extremely bearish, down by over 6% in the past 24 hours alone, following leading cryptocurrencies BTC and ETH

Written by: Aiswarya Gopan • Tuesday, July 13, 2021 • 2 min read

• Last updated: Tuesday, July 13, 2021

Why We Should Keep an Eye on Solana (SOL) Despite Bearish Mood

Early on Tuesday, Solana (SOL) is trading extremely bearish, down by over 6% in the past 24 hours alone, following leading cryptocurrencies Bitcoin and Ethereum’s downtrend currently underway. At the time of writing, SOL/USDT is trading around $30.

However, despite the downbeat sentiment exerting bearish pressure, the potential Ethereum killer has a lot of strong fundamentals that could keep its prices supported once the mood in the crypto market improves. One of the biggest strengths that Solana offers is its higher speed of processing transactions on account of its PoS consensus algorithm.

In addition, it merges this mechanism with a unique Proof of History (PoH) methodology, which makes it more secure and efficient, and hence more attractive for adoption by enterprises. At a time when energy consumption for crypto mining has been coming under fire, Solana gets an edge because of its PoS mechanism that consumes a fraction of the amount of energy that Bitcoin needs.

Solana could also enjoy some support over news about a DEX powered by its blockchain, Soldex, introducing AI and machine learning algorithms to empower crypto traders with automated market analysis, predictions and trend analysis, in addition to enjoying capabilities to process large volumes of data.

As we mentioned above, several users in the crypto community tout Solana as a potential replacement for Ethereum, owing to its far superior technology. A recent announcement by Australian blockchain company Power Ledger to migrate from Ethereum to Solana is one example that reveals this potential.

Key Levels to Watch

On the H4 chart of SOL/USDT, we can see the moving averages and the MACD indicator exhibiting a bearish bias. However, the presence of buyers is also being signaled by the momentum indicator flashing buy at the moment.

The price is sitting below the pivot point at $33 and just above the immediate support at $29. A strengthening of the bearish pressure can open the room for more downside below this level, possibly towards $26 where the next support sits.

On the other hand, a build-up of buying interest can take the price beyond $33 to test resistance of $36 before making a break above the key $40 level where the next resistance can be found.

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ABOUT THE AUTHOR See More

Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a financial journalist, editor, and content strategist with more than 19 years of experience across financial markets, fintech, blockchain, and technology. She has worked with leading cryptocurrency exchanges, including BingX and KuCoin, driving content strategy, market research, and editorial initiatives covering digital assets, DeFi, Web3, and global financial markets. Drawing on a background in cybersecurity, technology journalism, and market research, Aiswarya specializes in translating complex financial and blockchain developments into clear, timely insights. At FX Leaders, she covers cryptocurrency, stocks, forex, and macroeconomic developments across the Asian and European trading sessions.