Solana’s Price Decline Continues, Falling 4% on Friday to $136.5

Solana’s Price Decline Continues, Falling 4% on Friday to $136.5

The downward trend in Solana’s price extended into Friday’s trading, with a 4% intraday drop bringing it down to $136.5. The broader altcoin market is still under selling pressure, particularly as Bitcoin struggles to maintain its position above $60,000. The question now is whether sellers will tighten their grip further as we approach September.

Solana Price Faces Retest of Key Support Amid Launch of Liquid Staking Tokens

The Solana ecosystem is experiencing a resurgence in staking activities, spurred by the introduction of liquid staking tokens by major exchanges. Notably, ByBit has announced the forthcoming launch of bbSOL, a liquid staking token that allows users to stake their SOL tokens on Bybit Web3 in exchange for bbSOL tokens.

Despite this positive development, SOL price dropped below its 200-day Exponential Moving Average (EMA) on Thursday.

Liquid staking offers users the ability to earn rewards while maintaining liquidity on the platform, creating a win-win situation. These reward tokens can be used in other DeFi applications without the need to unstake the original assets.

In addition to Bybit’s initiative, other prominent exchanges like Binance and Bitget are expected to introduce their own staking tokens, BNSOL and BGSOL, respectively. The introduction of these tokens is anticipated to increase staking participation within the Solana network, thereby enhancing its security and overall ecosystem health.

This development is likely to have a gradual, long-term impact on Solana’s price rather than causing an immediate shift.

SOL Price Suggests Imminent Rebound with Flag Pattern Formation

After six consecutive days of decline, Solana’s price has fallen from $162 to $136, marking a 15.8% loss. This bearish movement indicates a continuation of the sideways trend within a flag pattern observed on the daily chart.

Typically, this pattern suggests a period of consolidation between two trendlines before the prevailing trend resumes its upward momentum. If this pattern holds, Solana’s price could see a 30% rally to $180 before a crucial breakout above the upper trendline.

However, the Relative Strength Index (RSI) has dropped to 40%, signaling that sellers currently dominate the market.

Should the market correction continue, Solana’s price is expected to drop by another 10% to retest the $121 multi-month support level, followed by the lower trendline of the flag pattern.