The cryptocurrency market has performed poorly for the second consecutive day this week.

The cryptocurrency market has fallen considerably over the last 24 hours. During that time, the market has dropped almost 5%, with a total market capitalization of less than $1.3 trillion.

Solana is one of the worst-performing major cryptocurrencies today, down by over 10%. This sell-off comes after a period of strong performance for Solana.

The cryptocurrency had surged to new all-time highs earlier this week, driven by increasing institutional interest. However, it seems that some investors are taking profits at these levels.

Despite a 4.5% drop in the last 24 hours, Bitcoin remains above $30k. Ether has fallen to $1,900 once again, down by 7% in recent hours.

Since the Solana network was shut down yesterday, SOL has been underperforming. The authenticators on the Solana network could not process new blocks in the last five hours. Resulting in a complete shutdown of all Solana applications.

The Solana Foundation has issued a statement apologizing for the incident and promising to improve the network’s stability. However, the damage has been done and SOL’s price is down by 10% today.

It is still too early to say whether this is a temporary setback or a more serious problem for Solana.

The cryptocurrency market is notoriously volatile and prices can change rapidly. However, Solana will need to work hard to regain investor confidence after this incident. According to a Solana tweet.

The downtime was triggered by a defect. In the Solana blockchain’s handling of a specific sort of transaction that is intended for offline usage. Over the previous year, there have been several outages on the Solana network.

But this is the first time that the Solana team has had to take the network offline for an extended period.

The Solana Foundation has not yet released an official statement about the incident. Solana’s CEO, Anatoly Yakovenko, tweeted that the team is “working hard” to improve the network’s stability.

This latest outage is likely to damage Solana’s reputation as a reliable platform for DeFi applications.

Critical levels to watch

The SOL/USD 4-hour chart is bearish as Solana has been underperforming over the past few days. The technical indicators show that Solana is currently in bearish momentum.

Data Source: Tradingview

The MACD line is below the neutral zone, implying a downward trend. The 38-day RSI suggests that Solana is severely oversold at the moment. 

A break below $7.50 could see Solana head towards the $5.00 support. However, a move above $9.00 is needed for Solana to start recovering.

The current market conditions are not favorable for Solana and the price will likely continue to fall in the short term.

The price of SOL is presently $40.9 per coin, with a market capitalization of $12 million. In the near term, however, the bearish trend may grow even more intense.

If the pessimism deepens further, SOL could fall below the first major resistance level at $37 before the end of trading today.

An extended negative performance could see Solana trade below the $35 mark for the first time this year.

A move to the downside could see Solana find support at $32.50 and $30.60. Further losses would then take Solana below the $30 mark and back towards the year-to-date low at $28.90.

The RSI is declining and is currently well below the 50 level, which shows that Solana is still in a bearish trend. The MACD is also in a bearish trend and is currently close to crossing over into negative territory.

At the moment, Solana is in a bearish trend and is expected to continue its downward move. Solana could find support at $32.50 and $30.60. A break below these levels would take Solana back towards its year-to-date low at $28.90.

James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.