Another cold shower on cryptocurrencies. Just when you least expect it, its total market capitalization suddenly dropped from $1,012 billion to $737 billion.a drop of almost 27% since last Sunday. The reason for the drop is Binance’s decision to withdraw marbles invested in FTT, the FTX platform token.
Without going into too much detail about this case, could lead to an unfavorable result for the Moon and Celsius image. In addition, recent news confirms a game over on FTX as the Binance IPO was abandoned. And if we look closely, we are not facing the end of our surprises. For it is precisely some altcoins that suddenly find themselves in turmoil, such as. Solana (SOL).
Although the latter had already lost some feathers since its last ETS in November 2021, it would be on the verge of breaking important support. So much so that, unfortunately, we would see a debacle, which in itself, would risk being fatal to the issue of its existence in the cryptocurrency ecosystem.
Solana in weekly units – $26 support shatters.
While Solana had been in the $26-38 price zone since mid-August, a huge bearish candle shattered it sharply in connection with the Binance-FTX deal. As of now, the $26 support has changed polarity turning into resistance. And at the same time, Prices returned to the $13 support. However, we will have to wait at least until next week to confirm these two extremely unfavorable signals.
If this is the case, the bear market in the SUN since its last ETS in November 2021 would be likely to strengthen. Not to mention that the 30-week moving average (weekly MM30) could break below $38 shortly. And so, Weinstein’s Phase 4 would continue its path of major hurdles. Especially since the current week’s bearish candle would show a form of desperation on the part of buyers.
But subtly analyzing the weekly chart on a logarithmic scale, we note that. Solana prices had broken their upward line since the week of last August 15. In itself, what is happening now reflects the end of its run. Now, the birth of a third wave of correction that at this moment sends the SUN to the $13 support.
And while the bad news is multiplying, The possible bearish crossover of the MACD in weekly units could portend new lows for the year. Just to force buyers to capitulate for good.
Solana in daily units – A pullback to $8?
Logically, the tough week we are witnessing has led to a succession of bearish candlesticks in daily units. With the simultaneous increase in trading volumes. This sharp drop in the price of Solana through the break of $26, unhappily attests to a real signal in favor of sellers.
In the space of a few days, buyers have seen the $38 resistance breakout scenario melt away like snow in the sun. And they are not out of the woods yet. On the one hand, technical indicators have fallen sharply below their respective waterlines. And on the other hand, the bearish momentum of the 200-day moving average (daily MM200) has strengthened considerably.
That said, today’s doji-like candle at the time of writing could have the merit of holding back an accentuation of the new wave of correction. In this sense, we could see a pullback or bounce below the $22 or $26 resistance. But in the jargon of technical analysis, this upward corrective move would be part of a But in technical analysis terms, this upward correction would be part of an intermediate stage to set the stage for new lows for the year, not far from the $8 support.
But given the psychological impact of the Binance-FTX affair, it would be possible to do without it. So much so that the current consolidation would be extended, and it would not matter if the RSI is clearly oversold.
GOLD – A third wave of correction is coming.
Let’s not beat around the bush. Binance, by announcing the end of FTX, momentarily buried hopes of the beginning of a bear market neutralization in cryptocurrencies. Although the timing may be questionable due to the proximity of important events such as the mid-term elections and the release of the latest US inflation figures, This case could serve to create a regulatory framework for this asset class. And why not encourage the emergence of MNBCs.
Returning to the Solana case, a third wave of correction is beginning to take shape in earnest. Not only that, on a weekly candle, we have validated two unfavorable signals for now: the failure below $38 resistance and the $26 polarity shift from support to resistance. But if that wasn’t enough, the current uncertainty in the financial markets shows no movement towards a clear improvement.
As a result, sellers who have been on the edge for the past few weeks are taking control. If so, SOL prices could soon test their supports. This would symbolize the non-return of the ALTSeason. despite the dominance of Bitcoin at half-mast.
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