Solayer Token Suffers 37% Drop due to Token Unlock Concerns, Yet Solaxy Presale Soars Skyward
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The Solayer token took a hit, plummeting 37% in the past 24 hours to trade at $1.94 as of 6:17 a.m. EST.
The sudden downturn in LAYER's price is linked to the impending release of 27.02 million tokens, worth approximately $52.41 million at current prices, that will enter circulation this week after a substantial token unlock.
Solayer boasts a market capitalization of around $388 million.
Solayer Price Drops Below Support Level, Approaching Next Key Level
4-hour LAYER/USD chart (Source: GeckoTerminal)
The Solayer price slid beneath a key support level at $2.3935 and is now edging towards the next critical level at $1.7129, according to GeckoTerminal analysis. Should LAYER dip below this technical support, it could face a steep dive down to $1.1545 in the near term.
On the flip side, traders viewing the current Solayer price as a bargain opportunity might mark an end to the crypto's descent. In this scenario, the altcoin may endeavor to recapture the $2.3935 support level. Overcoming this price barrier could then provide the technical foundation necessary for the token to ascend as high as $3.0391.
Technicals Point to Ongoing Solayer Price Decline
From a technical standpoint, indicators on the 4-hour chart suggest the Solayer price descent may not yet be complete. Traders should keep an eye on the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), both of which suggest the bears might push LAYER further south in the short term.
This follows the MACD line dropping beneath the MACD Signal line during the previous 48 hours. Since these two technical indicators intersected, the gap between them has escalated. Typically, this alignment and widening gap indicates increasing bearish momentum.
Also, there has been a noticeable decrease in buying power in the preceding 24 hours, as demonstrated by the decline in RSI values from over 50 to below 20 during this period.
The current RSI reading could be perceived as a buy signal, given that low RSI values normally suggest a crypto's upside potential is greater than its downside potential. However, there are instances in which the RSI remains low for an extended period. This generally occurs when a crypto is subjected to a substantial selloff.
Considering the escalating bearish momentum indicated by the MACD indicator, combined with the negative slope of the RSI line, it seems the Solayer price may continue to decline in the next 24 hours.
As Solayer's price continues its slide, investors are flocking to the presale for the upcoming Solana Layer-2 token, Solaxy (SOLX).
Popular YouTube channel 99Bitcoins—which boasts over 725K subscribers—predicts a potential 100X rally for the crypto post-launch.
Solana Prepares For Its Most Significant Upgrade Yet
Launched as a faster and more cost-effective substitute for the congested Ethereum network, Solana has experienced significant bottlenecks since its inception. This is partially due to the recent hype surrounding SOL meme tokens.
Even US President Donald Trump released his own token on the Solana blockchain, exacerbating Solana's congestion to critical levels.
Solaxy, the first layer-2 scaling solution for the Solana ecosystem, aims to alleviate congestion on the popular layer-1 network, thus averting another Solana outage.
The project will transfer the majority of Solana's transaction processing work from the mainnet to its native sidechain, where Solaxy will utilize scaling technologies such as rollups to process and bundle transactions. These batches of transactions will subsequently be submitted to the Solana network for final validation.
When compared to Solana's legacy, one-by-one transaction processing method, Solaxy's approach to transaction handling is far more efficient, given it submits multiple transactions at once.
In addition to scaling Solana, Solaxy also intends to connect the network with Ethereum, thereby creating a new powerful Web3 platform. Developers will then be able to construct the next generation of Web3 applications without worrying about restricted liquidity, sluggish speeds, or limited scalability.
Solaxy Presale Gains Momentum
Investors appear to be optimistic about SOLX's future, with over $33.43 million being sent to the ongoing presale already.
Currently trading at $0.001716, you can purchase SOLX using crypto or a bank card. Following the acquisition of SOLX, you can also stake your tokens for a 120% annual return.
Investors wanting to secure the best possible price should act quickly, as the SOLX price will increase within the next 29 hours.
Check out SOLX.
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- The Solayer token's price decline has led some investors to look towards alternative investments, such as the Solaxy (SOLX) presale, which currently has over $33.43 million sent to it.
- Solayer's dropping price has pushed its current trading value down to $1.94 as of 6:17 a.m. EST, with a potential move towards the next critical technical support level at $1.7129.
- Solaxy, a scaling solution for the Solana ecosystem, aims to alleviate congestion on the main network and connect it with Ethereum to create a more scalable Web3 platform.
- The Solayer price analysis shows indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) suggesting the negative price trend may continue for the next 24 hours.
