The Solana price is down more than 9% on the weekly time frame following a 3% drop in the last 24 hours to trade at $207.74 as of 10:40 p.m. EST as investors dump their holdings in the crypto.

With the negative trend the SOL price has been in over the last 7 days, the altcoin’s monthly performance has been pushed 4% into the red zone as well.

Solana Price Drops Below A Support Level

4-hour chart for SOL/USD (Source: GeckoTerminal)

The Solana price dropped below the support level at $209.38 in the last couple of hours, and has since been trying to reclaim a position above the mark. If SOL is able to recover within the next 8 hours, it could rise to as high as $225.33 in the short term.

On the other hand, the Solana price failing to close a 4-hour candle above $209.38 within the next 8 hours could lead to a more bearish scenario playing out in which traders start to short the altcoin. This potential sell pressure might result in a test of the immediate support level at $195.03. Continued sell pressure could even see the Solana price plunge to $182.27.

Solana Price Drop Might Only Be In Its Early Stages

From a technical standpoint, indicators on SOL’s 4-hour chart suggest the crypto’s price drop has only just started. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) suggest traders are unsure of which direction SOL will move in next.

In the last couple of hours, RSI readings have dropped from the high 40s to the low 40s. Decreasing RSI values are often seen as a sign of diminishing buyer strength. Now, the RSI line’s slope is starting to level off, which suggests bulls are trying to take control of the situation. However, the current reading below 50 suggests buyers have an uphill climb.

Meanwhile, over the past 48 hours, the MACD line has been positioned bullishly above the MACD Signal line to suggest that SOL has been in a positive trend. 

SOL’s positive trend seems to be coming to an end, as the MACD line starts to collapse in on the MACD Signal line. Should the two lines cross, it could confirm that the Solana price has entered a bearish cycle.

While the Solana price stands the risk of dropping even further in the short term, investors are piling into the presale for Solaxy (SOLX) to grow their portfolios. According to 99Bitcoins, a popular crypto YouTube channel with over 724K subscribers, SOLX has the potential to soar 100X after its launch.

Elevating The Solana Network To The Next Level

Solaxy is the first layer-2 scaling project focused on the Solana network. With the hype around meme coins in recent months and Solana being the preferred blockchain for meme coin developers, the network has come under computational stress. If something does not change soon, the network risks another outage, especially as the influx of new tokens continues.

Solaxy is well positioned to reduce the congestion and computational stress on the Solana network through its native side chain and scaling technologies. 

With its transaction processing capabilities, Solaxy will bundle Solana transactions off of the main chain and submit batches of transactions to the layer-1 for finality. This approach achieves a higher transaction throughput and will simultaneously slash Solana’s already-low transaction fees. 

Solaxy will also bridge the Solana and Ethereum networks to create a super Web3 ecosystem that is capable of meeting the growing demands and needs of decentralized application and meme coin developers. After combining the two networks, Solaxy will likely become a primary transaction layer between two of the most prominent networks in the Web3 space.

Investors Bet Big On SOLX’s Future

Solaxy has already raised more than $17.9 million through its presale, signaling a lot of investor confidence in the project’s future. This buying activity is likely to carry on given the 225% APY on offer to anyone who buys and stakes SOLX tokens at this early stage.

To get in on these passive crypto rewards, investors simply need to purchase the crypto through the simple buy widget embedded on the project’s website. Selling for $0.001624, SOLX can be bought with either crypto or bank card. After acquiring SOLX tokens, investors then need to navigate to the staking page on the website to put their tokens to work and start earning.

Buy SOLX here before a scheduled presale price increase in 3 hours.

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