Solana and Ethereum Set to Lead the Way as Market Bounces Back from Red to Green
The recent volatility in the global financial landscape, triggered by the Bank of Japan’s interest rate hike, has led to a widespread sell-off across all markets, including cryptocurrencies like Bitcoin and Ethereum. Analysts are warning investors to prepare for potential further declines in the wake of these broader macroeconomic forces.
Overview of the Solana Performance
Ethereum, the second-largest cryptocurrency, is currently testing a critical multi-year support level amidst significant selling pressure. Analysts, such as Josh of Crypto World, have pointed out that Ethereum’s recent bearish trend, especially after dropping below the $2,800 level, has triggered substantial market sell-offs. Currently, Ethereum is hovering near the 50% retracement level around $2,200, providing temporary support after the steep decline. However, despite bouncing from the “golden pocket” support zone between $2,100 and $2,200, the overall trend remains bearish.
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On the technical side, the 3-day Relative Strength Index (RSI) for Ethereum is approaching oversold territory, which has not been seen since September of the previous year. Moreover, on a weekly time frame, Ethereum has shown resilience by bouncing from multiple key support areas, indicating that it may have found a local bottom in the short term.
Solana Market Trends
In the case of Solana, a similar pattern is observed, with the price holding above a critical support zone between $120 and $128. The daily RSI suggests that Solana might have also found a local low, while facing considerable resistance levels at $153, $159, $170, and $183, making any short-term recovery a challenging prospect.
Read Also: Justin Sun Acquires Another 14,884 Ethereum as Market Shows Signs of Recovery
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Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
