In an unexpected turn of events, Solana (SOL) has been labeled as an unregistered security by the SEC in its latest enforcement action against Binance. As a result, the future of Solana remains uncertain, with the crypto market taking a hit alongside other top-10 projects that have also been declared as unregistered securities. Interestingly, all of these projects are based on Proof-of-Stake cryptocurrencies.
Following this news, Solana experienced a staggering -18.32% drop, damaging its technical structure. The enormous downward movement shattered multiple technical supports, including the MA20, MA200, and lower trendline. Currently, Solana is trading at $18.95, with a 24-hour gain of +1.66%. Its price action is at a critical point, deciding whether it will sink or swim.
The loss of moving average support may be detrimental for Solana’s performance, potentially ending nearly two months of reliable support from the MA200. However, the resilience of Solana’s oscillators offers a silver lining. The RSI sits at 40, indicating an oversold signal that could mean a bounce is imminent, while the MACD showcases only minor bearish divergence at -0.12.
Though fundamental headwinds have become increasingly turbulent, short-term price action could still present a degree of upside. A bounce from the current level could lead to an upward target above the essential MA200 support at $19.60 (+3.65%). That said, downside risk persists, with a lower support level potentially forming at $16.75 (-11.42%). This puts Solana in a position with a risk-reward ratio of 0.32, which denotes a poor entry carrying triple downside risk.
As concerns around Solana and other top-10 projects mount, investors have turned their attention towards alternatives, such as Ecoterra. Recognized for its commitment to recycling and sustainable ecosystems, Ecoterra has received an award at the Istanbul Blockchain Summit. Furthermore, the company’s unique Recycle-to-Earn (R2E) mechanism targets reducing carbon footprints and promoting environmental sustainability.
The Ecoterra pre-sale has already surpassed $4.88 million, indicating significant interest from investors keen to take advantage of the nascent project before an impending 10% price increase. With an ambitious roadmap, Ecoterra aims to launch on major cryptocurrency exchanges in the third quarter of 2023, while its Recycle2Earn application and Recycled Materials marketplace plan to be released by the end of the year.
Considering the urgent need for effective recycling practices on a global scale, investing in an environmentally-focused project like Ecoterra could contribute to both a promising Web3 initiative and a commitment to a sustainable future. As the pre-sale countdown continues, the question ultimately becomes not whether one should invest in Ecoterra, but rather if they can afford not to.
Remember, investing in cryptocurrency projects comes with inherent risks and volatility, so always perform your research and approach with caution.
Source: Cryptonews
