Solana Price Forecast as SOL Drop to 20-Day MA – Will It Fall Below or Bounce Back?

Earlier today, the price of Bitcoin tested $60,000 after the weekend bearish trend. Also, Solana SOL followed the trend, reaching $163.

Solana's SOL token has dropped to its 20-day moving average. Based on this position, the SOL price will either touch the line and retrace or fall below.

In this analysis, we'll provide more detail about SOL's next possible move after tracing its recent price movements.

SOL Price Action

In July, SOL started at $142 and climbed to $183 by July 21, a 28.87% increase. However, SOL's upward momentum didn't last.

It dropped to $167 on July 25, then rebounded, reaching $193 on July 29. However, SOL closed July at $171, an 11.4% decrease from its $193 high.August began with bearish pressure, pushing the price to $111 in the first five days, representing a 35.09% drop.

Later, the market structure shifted, forming higher highs and lows, suggesting a bullish trend.As a result, SOL touched $163 earlier today before quickly falling back. SOL trades at $155.5.

According to CoinMarketCap, it's down 0.63% in the past 24 hours, showing some bearish sentiment.

Despite this, SOL is up over 10% in the past month. If bulls maintain momentum, it might reach its previous high of $193. From the current $155, SOL needs a 24.39% increase to hit this target.

Meanwhile, let's examine its technical indicators in the next section.

Solana Price Analysis Using Technical Indicators

Several technical indicators suggest that the coin is bullish and can continue at this level.

Solana SOL price is at the middle Bollinger Band line (20-day MA). This level may determine SOL's next possible direction. A bounce-off will ignite more buy positions.

The MACD supports this bullish sentiment. It is above its signal line, and the histogram bars are green.

Furthermore, the Relative Strength Index is at 51, meaning the market is stable despite the bears trying to take over.

Another indicator, the Chaikin Money Flow (CMF) indicator, which measures a coin's buying and selling pressure, is at 0.05. This suggests moderate buying pressure and means more money is flowing into SOL than out. If this number increases further, it will attract more traders.

Will SOL Drop Below or Bounce Off?

Based on the technical analysis, SOL appears poised for a potential bounce. The confluence of indicators suggests bullish momentum. The middle Bollinger Band provides a key support level. If SOL holds this line, it could spark a rally.

The positive MACD reinforces this bullish outlook. While the RSI shows balance, it leaves room for upward movement.The bullish trendline adds another support layer, bolstering the case for a bounce. However, traders should watch for a potential shift in this indicator.

A decisive move above the middle Bollinger Band could confirm the bullish trend. Conversely, a break below this level might signal a bearish reversal.

Given the bullish signals, a bounce seems more likely than a drop. However, in the volatile crypto market, surprises can occur.

Solana's DeFi Ecosystem Sees Surge in Total Value Locked, Hinting at More Investor Influx

Solana's decentralized finance (DeFi) sector has experienced a significant boost. On August 5, the total value locked (TVL) in Solana DeFi hit $4.81 billion.

According to DeFiLlama, a blockchain tracker, the TVL is at $4.967 billion today, August 9. A rising TVL often signals growing investor confidence in a blockchain network.

As more investors use Solana DeFi, they need SOL to pay for transactions, creating buying pressure on the token. In addition, the jump in TVL could push Solana's price toward its previous high of $193.

However, while this TVL growth is promising for Solana, other factors should also be considered. Market sentiment, regulatory news, and technical developments can all impact price.

Meanwhile, as Solana's potential price bounce remains uncertain, it's worth noting that new projects are always emerging in the crypto space.

One such project, Pepe Unchained, is currently in presale and worth considering for investors.

Pepe Unchained - a Rising Memecoin with Layer 2 Blockchain

A new player called Pepe Unchained (PEPU) has entered the crypto scene. This unique memecoin boasts its own layer 2 blockchain.

PEPU aims to create a dedicated ecosystem for memecoins on Ethereum. It promises fast, low-cost transactions, addressing common issues in other networks.

This focus on memecoin-specific infrastructure sets PEPU apart from competitors. Despite recent market volatility, PEPU's presale has raised nearly $7.9 million, showing investors' strong interest in the innovative project.

Pepe Unchained Presale Gains Momentum

Pepe Unchained combines the popularity of meme-based tokens with the efficiency of a layer 2 blockchain.The presale operates on a multi-tiered pricing system, with the current price at $0.0089819.

Investors are rushing to secure their positions before the next price increase, which, according to the site, could happen in less than 24 hours.

Further, the presale also offers staking opportunities, currently providing a 246% APY. This feature allows early investors to compound their potential gains.

It adds another layer of attraction for those considering PEPU as an investment. Further, analysts predict significant growth after the initial exchange offering (IEO).

Don't miss out on this unique opportunity. Now, visit the Pepe Unchained presale website to learn more and participate in this innovative project.

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