The price of Solana (SOL) has been unable to break out of a tight range between $32 and $33 during the past few days.
As of this writing, SOL is trading at $32.72, down 16.5% in the last seven days – and around the same level it was trading Friday, data from Coingecko show, Monday.
According to analysts, the lack of price movement in Solana suggests that the market is uncertain about the direction of the cryptocurrency.
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Solana Can’t Extricate Itself Past $33
The Solana coin’s retracement phase entered the red zone this week, as purchasers lost almost 20% of their investment. The bearish trend appears unbroken as prices have been unable to surpass the $33 resistance level.
The subsequent level of support is $30, where prices found support earlier this week. If this level is broken, Solana prices could tumble to $28.
The bears were able to close a daily candle below the 20-day simple moving average (SMA), which also worked as short-term resistance, on Saturday evening. On the same night, Solana’s market capitalization again fell below $11 billion, which translates to a 10 percent decline.
Bears are active near the $43 resistance level, while the bulls are seeking to post a bullish comeback for the Solana currency. In response to the roller coaster ride, the bulls were twice rejected near the point of resistance.
SOL total market cap at $11.23 billion on the daily chart | Source: TradingView.com
SOL Shed Over 25% Of Its Value In Past Week
Likewise, Solana’s trading volume has been rather modest and stands at $620,821,685 at present. The bulls have attempted to drive prices higher, but have thus far been unsuccessful.
SOL has lost more than a quarter of its value in the previous week. This downturn began when the price was repelled at $44, a significant resistance level.
The increased sell volume is placing a severe burden on the bulls, who now seem absent from the market. Market observers anticipate a reaction if the price approaches a major support level.
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Meanwhile, Crema Finance joins the list of protocols running on the Solana blockchain that have been compromised.
In the early hours of Sunday, the liquidity protocol took to Twitter to warn users that all network activity had been canceled as a result of the attack.
This year, the Solana network has been plagued by a series of setbacks and chain exploits. Moreover, the network’s protocols have degraded.
According to a survey by Atlas VPN, the Solana ecosystem suffered five hacking incidents costing $397 million in the first three months of this year.
Featured image from Crypto News AU, chart from TradingView.com