Bitcoin (BTC) Stuck at $102,000, Dogecoin (DOGE) Loses 20%, But It’s Fine, Solana (SOL) Drops 21% in Three Days: What’s Next? #CriptoNews

Solana has seen a sharp 21% drop over the past three days, erasing some of the impressive gains from its recent rally. This sudden reversal is partly attributed to the meme coin frenzy, which initially boosted Solana’s ecosystem but has now turned into a liquidity drain, leaving the asset vulnerable to a sell-off.

Increased network activity and intense speculative interest in meme coins based on the Solana blockchain helped SOL reach its most recent peak of $295. But the momentum stalled, and SOL is currently trading close to its 50 EMA at $238. A breakdown below this level, which is currently at $240, could expose SOL to additional downside risks, but it also acts as immediate support.

The Solana meme coin rally played a major role in its bullish run, drawing speculative inflows to projects that took advantage of Solana’s low fees and high throughput. Bearish pressure is being created, though, as the same liquidity that drove SOL higher is now leaving as the hype fades.

Because of this change, Solana is now vulnerable, underscoring the dangers of relying too much on transient speculation. Recovering the $260 resistance and holding the $240 support level are necessary for SOL to get back on track. Restoring bullish momentum with a move above $260 might retest the $280-$295 range. On the downside, if SOL is unable to hold onto $240, it may fall toward $213, which is in line with the 100 EMA and a crucial support area from the consolidation in December.

Bitcoin’s questionable trend

Bitcoin has hit a critical resistance level at $102,000, struggling to break through despite a generally bullish market trend over the past few weeks. The cryptocurrency’s inability to make a decisive move past this level highlights several factors currently holding it back.

The slowdown in institutional inflows is one important contributing factor. Institutional investors made a substantial contribution to Bitcoin’s recent surge. But as the market euphoria wanes, this momentum seems to be fading. Additionally, the general enthusiasm for meme coins and altcoins that drove this rally’s early phases has diminished. Because of this, overall liquidity and inflow into Bitcoin have lagged, resulting in a period of consolidation for the cryptocurrency.

Bitcoin is currently trading just above its 50 EMA, which has served as a support level in this upward trend. Even so, the trading volume is down, indicating that traders are unsure of their next course of action. The fact that the RSI is still neutral suggests that there are neither overbought nor oversold conditions at this time, but it also suggests that there is not enough momentum to move higher.

It will require fresh buying pressure for Bitcoin to exit this range, possibly brought on by a resurgence of institutional interest or a fresh market catalyst. Bitcoin runs the risk of retracing to retest lower support levels like $98,000, which corresponds to the 100 EMA if it is unable to clear $105,000.

The general enthusiasm of the market has also been affected by the slowdown in the meme coin’s performance. Earlier in the rally, Bitcoin benefited indirectly from the influx of new players brought in by the meme coin’s explosive growth. Now that there is less speculative activity, Bitcoin is in a more difficult situation.

Dogecoin is fine

Dogecoin has faced a steep 20% decline in its price over the past few days, causing concern among its investors. However, a closer look at the technicals suggests that this drop might not spell disaster for the popular meme coin.

Since Dogecoin has dropped 20% from its most recent peak, investors are beginning to wonder where the meme coin will go. There are still grounds for optimism regarding DOGE’s overall market position and possible recovery in the upcoming weeks, notwithstanding the decline.

Related

During its most recent rally, DOGE reached a high of $0.50 before dropping to a crucial support level close to $0.36. This retracement is consistent with the market as a whole cooling off after a period of increased volatility, especially in the meme coin space. With its current price hovering around $0.38, DOGE is exhibiting stabilization as it continues to hold above the rising trendline that has sustained its rise since October.

Additionally DOGE’s relationship to Bitcoin and general market patterns implies that any recovery in the price of BTC may have a favorable effect on Dogecoin. If the general mood of the market improves, DOGE may gain from fresh inflows as long as institutional interest in cryptocurrencies remains stable.

In the near future, Dogecoin’s price is probably going to settle into a new base around the $0.36-0.40 range. The next significant price movement may be indicated by a breakout or breakdown from the $0.40 resistance and $0.36 support levels, so traders should keep a careful eye on these levels.