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Solana (SOL) Pushes Past 200, Despite the Crypto Flash Crash

Solana (SOL) Pushes Past 200, Despite the Crypto Flash Crash

Posted Thursday, September 9, 2021 by
Jose Maria Miguel Marquez • 2 min read

*SOL loses -30+% during the crypto flash crash, before recovering and hitting new highs

The cryptocurrency world was shaken up by a crypto flash crash last Tuesday, with the entire crypto market cap falling below $2 Trillion – which adds up to a loss of approximately $400 Billion within 24 hours, according to CryptoMarketCap.com. 

BTC and ETH crash

Bitcoin (BTC) recently rallied to almost $53,000, only to be sold down to a low of $42,843 in one day. Ethereum (ETH) experienced the same fate, initially trading near $4,000, then falling to a low of 3,015, before recovering some of its losses intraday. 

Solana (SOL) on the other hand, showed more resilience than the two major cryptos, as it bucked the flash crash and even ended the day in the green, with another new all-time high. Today, for the first time ever, SOL has broken above the $200.00 resistance level. 

The relative strength of SOL

Market crashes like these are excellent measures of the relative strength of various cryptos. Most coins in a market crash take longer to recover, as the stronger ones separate themselves from the pack. As you can see below, the top four cryptocurrencies, in terms of market cap, have not recovered strongly: BTC, ETH, ADA, BNB. 

Crypto Day High Crash Low High-Low Day Volatility% Current Price as of writing Recovery from Crash Low%
BTC 52,920 42,843 -19% 46,146 7%
ETH 3,947 3,005 -24% 3,484 14%
ADA 2.875 2.000 -30% 2.53 21%
BNB 504.80 369.00 -27% 414.30 11%
SOL 195.48 128.01 -35% 206.40 38%

 

It is noteworthy to see that SOL had the largest high-to-low volatility percentage for the day, but still ended up with the strongest recovery within the group. Also, looking at the price charts, all four cryptos are trading far from their all-time high levels. This could also be a way to compare and measure the relative the strength of each crypto. SOL is leading the way, as it is already trading at all-time high levels, with ADA coming in second, at 22% from the all-time high. 

Crypto Current Price All-time High % from ATH
BTC 46,146 64,895 41%
ETH 3,484 4,380 26%
ADA 2.53 3.10 22%
BNB 414.30 691.80 67%
SOL 206.40 206.40 0%

SOL: Market Leader

Based on its price movements during the recent flash crash, it is safe to assume that Solana is one of those cryptos that have proven strength and resilience, as it just keeps on rallying higher and higher, hitting all-time highs continuously. SOL has indeed become a market leader in the crypto space, given its use-case and innovation. We might see something much, much bigger from Solana in the future. But right now, technically, it is trading parabolically at a highly overbought level. It seems like a proper consolidation or correction is in order, so it’s best to wait for better entry opportunities for Solana.

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