Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Solana Holds Support Above Key Indicator – Expert Sees Push To ATH If Momentum Returns

Solana has faced relentless selling pressure since late January, wiping out over 40% of its value after reaching all-time highs. Price action remains bearish, with SOL struggling to find strong support as the broader market experiences volatility. Investors are increasingly cautious, fearing that further declines could follow if key levels fail to hold. Related Reading: Ethereum Is Consolidating After The Flush Last Weekend – The Calm Before A Big Move? However, analysts believe Solana could see a swift recovery if it manages to maintain its current structure. Top analyst Daan shared a technical analysis on X, revealing that Solana is still hanging around above a key diagonal trend line and the Daily 200MA/EMA. This suggests that if SOL holds this area, it could regain strength and push higher in the coming weeks. While Solana’s price action has been concerning, the overall structure still looks intact. If the market regains momentum, SOL could quickly reclaim lost ground and make another run toward its previous highs. The coming days will be crucial as investors watch whether Solana can defend its support levels or if further downside is on the horizon. A strong bounce from current levels could mark the beginning of a new bullish phase for SOL. Solana Testing A Crucial Level Solana is trading at a critical zone after dropping more than 14% since Tuesday, testing the last support level that maintains its long-term bullish structure. Investors are growing concerned as selling pressure intensifies across the broader crypto market. If SOL fails to hold its current demand level, it could face sustained selling pressure, potentially leading to a deeper correction. Daan shared a technical analysis on X, noting that Solana is still holding above a diagonal trend line and the Daily 200MA/EMA. As long as this area remains intact, the structure looks decent for a potential rebound. He emphasized that these support levels have historically played a crucial role in determining SOL’s trend direction, making them a key focus for traders and investors. However, Daan also pointed out a technical concern regarding the two sweeps of the 2021 all-time high, which could indicate market uncertainty. Despite this, he believes that if the market finds momentum again, Solana could recover quickly and make another run toward higher price levels. Related Reading: Massive XRP Accumulation – Whales Bought 520 Million XRP During Market Dip For now, SOL’s ability to hold above key support levels will determine its short-term direction. If bulls manage to defend these areas and push the price back above resistance, a strong rebound could be in play. SOL Price Action: Technical Levels To Hold Solana (SOL) is trading at $192 after a volatile and bearish start to February. The price is currently holding at the 200-day exponential moving average (EMA) and remains 5% above the 200-day simple moving average (SMA), signaling that this is a critical moment for bulls to step in and defend the long-term trend. If SOL manages to hold above these key indicators, the next objective for bulls will be reclaiming the $200 mark, a psychological and technical resistance level. A successful push above this level would signal strength and set the stage for a larger recovery in the coming weeks. However, if SOL fails to hold above the 200-day EMA and loses this crucial support, the price could face a significant drop toward lower demand areas around $170. This would confirm a deeper correction and extend the bearish momentum that has dominated the market since late January. Related Reading: Bitcoin Support Sits At $90,6K Short-Term Holder Realized Price – Expert Reveals Key Resistance Level With the market still under pressure, SOL’s ability to defend its long-term moving averages will determine its next move. A rebound from these levels would indicate bullish resilience, while a breakdown could accelerate selling pressure and push the price further into lower demand zones. Featured image from Dall-E, chart from TradingView CoinOtag

---

Why is Ether Down Today? Market Fears and Growing Supply Help Fuel 5% Slide

Ether (ETH) has fallen more than 5.1% over the past 24-hour period to below $2,600, while bitcoin (BTC) is down around 2.9% over the same period to $95,700. The largest altcoin’s price performance has pushed down the CoinDesk 20 Index by nearly 4% over the period amid a market downturn that also affected equities markets over U.S. President Donald Trump announcing plans to unveil reciprocal tariffs next week, escalating fears of a trade war with the country’s major trading partners. Yet ether’s underperformance comes amid other factors influencing the cryptocurrency specifically, including its circulating supply having recently risen past pre-Merge levels. The Ethereum Merge —the network’s merge with the Beacon Chain that moved it to a Proof-of-Stake (PoS) consensus mechanism—was widely expected to help its supply drop, and it did so for months. The trend, however, reversed in April, weeks after the activation of the highly anticipated “Dencun” upgrade . This upgrade suppressed the growth of layer-2 networks by reducing their data fees and introduced transaction “blobs,” which helped reduce transaction fees. Reducing transaction fees on Ethereum has meant that less ether is burned, which in turn reversed the cryptocurrency’s supply trend. Since the introduction of EIP-1559 in 2021, every ether transaction has a base fee that gets burned, helping reduce the supply of ETH. The reduction in burned ether has seen ETH’s supply grow over the last few months to the point its circulating supply has grown by 8,242 ETH since the Merge, data from Ultrasound.money shows. Ether also saw the Securities and Exchange Commission (SEC) recently delay its decision on listing options contracts for BlackRock’s iShares Ethereum Trust (ETHA), which could also be weighing on the cryptocurrency’s performance. Other factors, including a restriction of the Ethereum Foundation and heightened competition from other networks, including Solana, have also been affecting ether, whose value relative to BTC recently dropped to 2021 lows. In a research report, JPMorgan has said ETH lacks a compelling narrative like that of BTC Despite the bearish performance, analysts have pointed out ether’s price is mirroring a pattern it saw before that was followed by renewed bullish momentum. On Friday, Jake Ostrovskis, an OTC trader at crypto market maker Wintermute, told CoinDesk he was seeing “strong over-the-counter demand for ETH.” Analysts at Santiment pointed out on social media there has been a drop in the amount of ETH tokens at a profit since they were first mined as bearish sentiment affects the cryptocurrency, which could be a potential setup for a surprise bounce “once crypto markets are able to stabilize.” CoinOtag