Solana eyes shine as Bitcoin stumbles around $55k

Solana eyes shine as Bitcoin stumbles around $55k






























According to analysts who are closely monitoring Bitcoin’s price recovery, the primary resistance level is currently between $60,000 and $63,000. Historical trends suggest that BTC will often correct heavily before healthy uptrends continue. 

The precedents set by these past movements show that Bitcoin can follow in the same direction should a significant breach occur on resistance at major levels, which may clear the way to new all-time highs for BTC. 

In January 2021, Bitcoin reached its highest point at approximately $40,000 before retracing to the mid-$30,000s. In April of this year, Bitcoin experienced a new rally and ended with a correction, reaching highs of approximately $64,000. Some significant technical support levels have been fractured and even obliterated by Bitcoin’s poor price behavior this month.

An analyst named Ansem tweeted that the cleanest reclaim for $BTC would be a close back over the 60–63k area, which is now key resistance. The analyst said she expects Bitcoin to drop lower before recovering towards this range. If Bitcoin dips lower, the analyst will closely monitor the reaction of other altcoins, particularly the discussion around $SOL, which she continues to believe is an overvalued buy. 

Solana (SOL) began July 2024 on a somewhat unstable note, as the price of SOL started at around $139.07. The price fluctuated with the market, as shown amid rumors of a law enforcement investigation that initially pushed prices lower. But the news from VanEck launching the Solana Trust created a one-week 7% spike, contradicting this. 

Nevertheless, the action prompted concerns regarding potential wash trading, but it was insufficient to deter investors, as the volume of USDC stablecoin trades on the Solana network plummeted by an astonishing 90%. There is still a possibility of a gradual upward trend as early July approaches, with SOL expected to reach approximately $155.49, representing a 5.93% increase. An additional correction may be forthcoming for SOL, which is currently priced at $132.46.

Solana (SOL) has a strong track record of robust performance, innovative proof-of-history consensus mechanisms, and the ability to support fast transactions that compel significant institutional interest. This is why it is a popular pick for many analysts and investors, even during the altcoin winter. 

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While Bitcoin (BTC) confronts key resistance zones between $60,000 and $63,000 and will likely slide down if the price retests these levels, SOL presents a more attractive buy opportunity in the short term. The analyst believes that SOL has unique properties and upcoming events that will help it grow. Nevertheless, cryptocurrency markets tend to be quite volatile, and investors should research before investing.

Anushka Basu

Anushka Basu combines journalism, market analysis, and research in the blockchain industry. She specializes in price analysis, market trends, and DAOs, excelling in thorough research on various cryptocurrencies. Additionally, she has experience assisting journalists from FOX Business TV, further honing her expertise in DeFi.



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Published at Mon, 08 Jul 2024 12:52:32 +0200

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