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- Two major Solana NFT projects call quotes from the platform.
- Trading volume whooped by more than 170%.
- Its BTC valuation drops by nearly 10% to $0.00058.
The top two Solana NFT projects, DeGods and y00ts, have announced to leave the blockchain in 2023 and shift to rival platforms—Ethereum and Polygon. This news outbreak has sent SOL holders bananas, and a flood of negative sentiments is scented. After the FTX collapse, Solana was hard hit by the aftermath, and now this proposed exit has sent shivers down the holders’ spine as they fear another collapse before the year’s end. Prices react per the investors’ fear, as many are also leaving SOL to hang out to dry. A thought is aroused in the minds of the holders, if big boys like DeGods and y00ts are leaving, the smaller kids might follow too and vacate the space leaving the void behind.
The falling structure
SOL prices are sharply falling, with 20 and 50 EMAs hovering above the downtrend and 100 and 200 EMAs holding in the ranges of $20 and $30, respectively. Price is seen facing strong selling interest near $12 and then again at $11. The current price stands near $10 with seller active trading volume, as users are deserting the market. The falling OBV suggests prices to fall down further and reach somewhere near $7.
The analysis signifies that the prices are currently consolidating losses. The CMF retains below the baseline and further slopes down, indicating the fall. The MACD reflects buyers exiting the marketplace, creating space for the sellers. RSI motion suggests SOL is facing overwhelmed selling and may become strongly oversold.
Crumbled picture
The 4-hour time frame shows prices steeping down with a strong force. The CMF continues to be negative and floats below the zero mark. The MACD records a sudden rise in sales as tall standing bars are forming with falling interest by both parties. The RSI struggles to escape the oversold zone.
Conclusion
SOL token witnesses heavy selloffs as holders react to their fear of probable collapse. The token had set high hopes for the coming year, which seemed to go in vain after the new release. The market situations look risky, and motivated to sell and leave before heavy harm is caused.
Technical levels
Support levels: $9.11 and $7.08
Resistance levels: $12.23 and $14.11
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
