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Solana prices dive 42% within a week, will there be a quick recovery

Press Releases Crypto News AMB-Crypto Solana prices dive 42% within a week, will there be a quick recovery

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Solana registered large losses in the market in recent days.
The lower timeframes showed extreme volatility and risk-averse traders can stay away from SOL in the coming days.

Another day, another market-wide nuke. Welcome to the crypto space, where a 25% price drop genuinely represents a long-term buying opportunity. The argument behind a Solana recovery is the degree of decentralization of the network. Development activity was at six-month highs as well, according to Santiment data.

Realistic or not, here’s SOL’s market cap in BTC terms

Yet, the technical structure was bleak for the bulls on the higher timeframes. Solana has been in a lower timeframe downtrend since late April. Can the bulls defend the support zone at $14.8 or will further bad news drag the market lower?

November’s resistance can serve as support for SOL- but it could be a temporary respite

Source: SOL/USDT on TradingView

After huge news like the SEC branding SOL a security, the market is likely to take a while to assess the true damage done. If the market concludes that the initial sell-off was an overreaction, prices will eventually climb higher.

This was a possibility, but the why and how of market movement are beyond technical analysis. From a technical standpoint, we find that the $13.8-$15.3 zone was a strong resistance back in November, during the FTX implosion. It was breached during the early 2023 rally.

Hence, it was likely to act as suppor

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Author: Akashnath S

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