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Why is Solana (SOL) Price Potentially Plummeting? Check out these 5 Warning Signs of the Week!

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Why is Solana (SOL) Price Potentially Plummeting? Check out these 5 Warning Signs of the Week!

Jakarta, Pintu News – This week, the Solana (SOL) price is showing indications of a significant downside risk. Various factors suggest that Solana (SOL) price volatility could increase dramatically. As of July 7, the price of Solana (SOL) stands at $152, a slight increase of 0.9% in the last 24 hours.

Major Hurdles in the 50-Day SMA

One factor that could hamper Solana’s (SOL) price gains this week is a major hurdle at the 50-day SMA level of $154. Solana (SOL) has failed to break this level for almost a month, and without enough buying pressure to push the price above it, the altcoin may continue to experience weakness.

If the price is rejected at this level, there could be a drop to the lower support at $130, which could trigger a massive price drop. Looking at previous trends, this kind of drop often occurs when the 50-day SMA level cannot hold.

Also Read: US Tariff Delay Could Make Bitcoin Set a New Record This Week, What’s Really Happening?

Potential Long Squeeze Worth $109 Million

There is a potential for a large long squeeze at $150 that could trigger a drastic drop in Solana (SOL) price this week if buyers fail to defend current levels. This bearish scenario is visible on Coinglass’ liquidation map, which shows that if Solana (SOL) drops to that level, more than $109 million of long positions are at risk of being forcibly closed. Long squeezes usually lead to bearish Solana (SOL) price predictions because when traders are forced to close their positions, they are forced to sell, which ends up with a bearish impact.

Meme Coin Activity Increases

Meme coin activity is on the rise, and this could also affect Solana (SOL) price performance this week. In the past, increased meme coin trading activity has often been positive for Solana (SOL) due to the PumpFun platform. Currently, meme coins are in the spotlight after Tesla CEO Elon Musk endorsed the crypto asset after he formed a new political group.

Data from CoinGecko shows that the market capitalization of the Solana (SOL) based meme coin has increased by 3% to $11 billion, and if this continues, it may be bullish. However, if this decreases, the price of Solana (SOL) is likely to face a sharp decline.

Conclusion

This week, Solana (SOL) price is at a critical point. With the lack of strong buying pressure, Solana (SOL) is likely to face rejection at the 50-day SMA level and is at risk of a $109 million long squeeze that could trigger a major drop. Meanwhile, tariff concerns and increased meme coin activity could cause volatility.

Also Read: Russia Launches National Register of Crypto Mining Rigs: Cryptocurrency Miners Taxed?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

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