Solana Price Prediction: SOL Plunges 5% In A Week As This New Layer-2 ICO Races Towards $22 Million

The Solana price plunged over 5% in the last week and 3% in the past 24 hours to trade at $187.25 as of 9:57 p.m. EST as investors keep decreasing their exposure to the altcoin.

The SOL price has been in a negative trend over the past month. During this longer-term period, bears have pushed the crypto’s value down more than 15%.

Solana Price Stuck In A Sideways Channel

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

The Solana price has been in a consolidation channel between $185.97 and $201.27 over the last few days, GeckoTerminal data shows. This period of sideways trading could be the precursor to a big move.

Should the Solana brice break up towards the upside, SOL might first try to flip the resistance level at $201.27 into support. Thereafter, continued pressure from buyers could lead to a climb to as high as $220.20 in the short term.

On the other hand, a bearish scenario might see the Solana price retesting the $185.97 support. A drop below this technical crutch could then lead to a plunge to as low as $173.59.

Technicals Suggest The Solana Price Might Drop Some More

From a technical standpoint, indicators on SOL’s 4-hour chart suggest bears might try to push the Solana price down to below the immediate $185.97 support level. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) show bearish signs.

In the last 24 hours, RSI readings have dropped from 43 to 33, which suggests diminishing buyer strength and increasing seller power. The negative slope of the RSI line could also be interpreted as an indication that sellers are still accumulating strength against buyers.

Meanwhile, the MACD line has broken away below the MACD Signal line throughout the past day of trading. The current alignment of the MACD line underneath the MACD Signal line might suggest that SOL is in a bearish trend, while the growing gap between the two lines could indicate that SOL’s bearish momentum is growing stronger.

While the Solana price remains at risk of dropping further, investors rush to buy a new SOL layer-2 project called Solaxy (SOLX) for potential growth. According to the popular YouTube crypto channel 99Bitcoins, which has over 724K subscribers, SOLX has the potential to rally 10X after its launch.

Solaxy To Scale Solana Amid Suring SOL Meme Coin Hype

Solana has become a popular playground for meme coin developers looking to capitalize on the surging hype around SOL-based meme coins. This has led to high levels of congestion on the Solana blockchain, with new tokens entering the ecosystem on a daily basis. If something does not change soon, the Solana network could suffer another outage.

Solaxy, the first layer-2 scaling solution for Solana, aims to prevent future downtime for one of the leading networks in the Web3 space. To do this, the project introduces a native sidechain and multiple scaling protocols that, when combined, will increase the number of transactions the Solana network can process.

One of the technologies used by Solaxy is roll-ups. These protocols process and bundle transactions off of the layer-1 network, and then submit the batches of transactions back to the Solana mainnet for final verification and record keeping. 

This method of processing transactions off-chain has already been proven efficient with Ethereum and layer-2 networks Arbitrum and Optimism. By shifting the bulk of the transaction processing workload off of Solana, Solaxy will increase the transaction throughput of the already-quick layer-1 infrastructure, while also reducing fees and lowering congestion levels.

Investors Bet Big On SOLX’s Future

Solaxy has raised over $21.6 million through its blockbuster presale so far, signaling strong investor confidence in the project’s future. This strong ICO performance is likely to continue given the 188% APY on offer to anyone who buys and stakes SOLX tokens at this early stage.

To get access to the passive crypto rewards, investors will first need to get their hands on some SOLX. Currently selling for $0.001638, SOLX tokens can be bought with either crypto or bank card.

After purchasing some SOLX tokens, investors will then need to navigate to the staking page on the website to lock up their tokens and start earning. Interested investors who want to lock in the best ICO rate will want to hurry, because SOLX’s price is set to increase as its presale progresses.

Buy SOLX here before the next presale price hike in less than 2 days.

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