Solana Falls Below $200 Psychological Level – Time to Buy the Dip?

The price of Solana ($SOL) has been dropping sharply in the past 3 days and accumulates a 12% retreat in the past 7 days.

A critical date approaches for this layer-one network as applications for multiple Solana spot exchange-traded funds (ETFs) with the United States Securities and Exchange Commission (SEC) are nearing their deadlines.

On January 23, the SEC will have to respond to Grayscale’s Solana ETF application – either by approving or rejecting their proposal. Analyst Nicolai Søndergaard from the research firm Nansen believes that an ETF for Solana will go live in 2025, the only question is when.

“The question is if it’s going to take a lot of iterations before it goes through, similar to what happened with BTC and ETH. But I think it’s definitely happening in 2025,” he said during a 2024 event hosted by Cointelegraph.

According to Polymarket wagers, the odds that a Solana spot ETF will be approved in 2025 stand at 74% as of today.

The Most Critical Support Area to Watch for $SOL is $175

Analysts believe that traders are still in take-profit mode ahead of Donald Trump’s inaugural speech.

The crypto markets rallied right after the pro-crypto candidate was elected. As a result, the aggregated market cap of cryptos surged above $3 trillion while the price of Bitcoin ($BTC) jumped above $100,000 for the first time in history.

In the case of $SOL the price surged to a new all-time high of $264 as traders believe that Trump could open the doors to a new era that includes supportive legislation and higher adoption rates for cryptocurrencies by mainstream and institutional investors.

This narrative and the tailwinds that lifted $SOL and other alt-coins right after the November election are still in play, which is why some analysts are deeming this pullback a perfect opportunity to buy the dip.

Meanwhile, if a Solana ETF is approved, billions of dollars of retail and institutional money could flow its way and could contribute to turn the tide around for this alt-coin.

For now, the latest price action has partially invalidated the bullish breakout of a flag pattern that has been unfolding in the past month and a half. The latest three-day drop pushed $SOL into the flag’s body once again.

Now, the $225 level emerged as the most important resistance to overcome in the following days if buyers take over. Meanwhile, if the selling spree continue, the $175 level is the most relevant support area to watch as a break below could result in a full-blown retreat below post-election prices.

Such a significant change in the prevailing uptrend seems unlikely as the macro tailwinds that once lifted $SOL to fresh all-time highs are still favoring a move to higher ground in the mid to long term.

This Layer-Two Scaling Solution for Solana Has Raised $9M from Investors

Solaxy ($SOLX) , a layer-two scaling solution for the Solana blockchain, has attracted the attention and interest from thousands of investors who have poured a total of $9.44 million into the project in less than a month.

The rise of meme coins and decentralized finance (DeFi) platforms like Raydium, Jito, and Jupiter within the Solana ecosystem have congested the network in various occasions – especially when the market rallies or craters.

Solaxy solves this issue by bundling transactions offline to alleviate the network’s activity and reduce the number of blocks needed to record transactions on the mainnet.

In addition to the potential increase in the price of $SOLX that could come after the token is listed on exchanges, early buyers will also earn handsome staking rewards for securing the network. The APY for $SOLX currently stands at 371% and over 3.1 billion tokens have been staked already.

The current presale price of $0.001596 will only be available for the next 48 hours and will be raised once this period expires.

If you want to buy $SOLX, go to the Solaxy presale website and connect your wallet to convert USDT or ETH tokens instantly or you could also use a bank card to complete the purchase.

You can also join the official Solaxy Telegram group to get the latest updates or follow the project’s official X account.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.