The winds of the market have been particularly turbulent for Solana (SOL), which has been caught in a rough storm in the past two years. It’s challenging to be optimistic in light of SOL’s recent performance, which saw it slide a staggering 90% since its all-time high in November 2021. But hope was renewed in 2023, when a broader crypto resurgence breathed life back into the beleaguered blockchain, boasting a recovery rally of 147%. This rebound was largely fuelled by SOL’s integration with Neon EVM.
However, all may not be as rosy as it appears. SOL’s promising trajectory hit a roadblock at $32.00 on July 14th, marking its first major retreat in 2023. Currently trading at $23.72, SOS’s journey south has caused jitters amongst investors who are wary of the tumbling price action. Although it’s hoped that the 20DMA would provide a solid lower support level, this safety net now seems threatened as SOL’s price hovers dangerously close to this level. It paints a gloomy picture, especially as we recall the last time SOL slipped below the 20DMA, it bled out a gut-wrenching 30%.
Adding to the unease, Solana’s key indicators offer scant comfort. Despite a rapid cool-down on an overheated RSI, it still flashes a warning sign with an over-bought signal at 53.5. The MACD offers a similar worrying signal, echoing this sentiment with a bearish divergence at -0.31. While Solana hitting zero is highly unlikely thanks to lower supports at $21, $16.75, and $15, the risk:reward structure at 0.86 on the short-time frame reflects the potential downside.
Curiously, the downtrend has resulted in a shift in market attention towards meme coins, with Evil Pepe Coin catching investors’ eyes. A derivative of the market-leader Pepe Coin, Evil Pepe is captivating cryptocurrency enthusiasts with its low initial valuation of $2 million, presenting a promising opportunity for early investors. The creators behind successful meme coins Thug Life Token and SpongeBob are also steering Evil Pepe’s journey, further fuelling high expectations.
Evil Pepe also demonstrates a robust commitment to its community by offering 90% of the total supply during the presale and locking 10% for DEX liquidity for a month, which provides investors with a sense of stability. Pushing boundaries even further, the Evil Pepe team projects a daring market cap goal of $100 million and aims to foster community participation by listing on a decentralized exchange.
All in all, the contrasting tales of Solana’s discomforting performance and Evil Pepe’s audacious emergence underscore the volatile landscape of the crypto market. Still, as they say in the world of crypto, never invest more than you’re willing to lose.
Source: Cryptonews
