After hitting a high of $174.960 and a low of $150.640, SOL/USD closed at $169.630. SOL/USD fell for the fifth day in a row on Monday, continuing its downward trend. Profit-taking could be triggered amid the current drop in SOL/USD values, which came after the cryptocurrency hit an all-time high of $215.190 last week. This week, SOL/USD saw some selling pressure after increasing over the previous eight weeks, owing to profit-booking by numerous investors.
After gaining popularity in NFT, Solana reached its ATH level on September 9. SOL is a native token of the Solana blockchain, an open-source project maintained by the Geneva-based Solana Foundation. It operates a new, high-performance, permissionless blockchain.
Solana’s stock has soared by more than 300 percent in the last 30 days, and the only explanation for this can be the investors’ heightened interest in Solana’s blockchain as potential competition to Ethereum. Two different NFT projects have been established on the Solana ecosystem, and the demand for SOL by retail buyers is growing every day. As a result, despite a broad market meltdown, the price of SOL tokens increased by more than 50% last week.The debut of the NFT Degenerate Ape Academy, which contained a collection of 10,000 cartoon apes and was hosted by Solana on August 15, has also aided the rally in SOL/USD. Earlier this week, Solana established an FTX-backed digital collectibles marketplace, causing SOL prices to hit an all-time high. NFT producers and owners could trade their digital arts cross-chain, using Solana and Ethereum via the crypto derivatives platform, FTX.
On Saturday, the Solana blockchain saw its first million-dollar NFT transaction, when Moonrock Capital, a blockchain advisory business, purchased one of the Degenerate Ape Academy NFTs for 5,980 SOL ($1.1 million). Despite this, the SOL/USD exchange rate fell over the weekend, as investors began to book profits.
SOL/USD Technical Outlook
On the technical side, the SOL/USD coin is facing strong resistance at the 167.690 level. This level is being extended by a downward trendline on the 4-hour chart. Closing of candles below the 170 level suggests strong chances of a continuation of the bearish trend.
On the lower side, the coin is likely to go for the 153.39 support level, and below this, the next support could be found around the 137.10 level. The 50-day simple moving average is likely to provide resistance at 175.65, and a bullish crossover above this level could extend the buying trend until 182.99 and 196.30. Good luck