Solana Price Analysis: Imminent $16 Correction on the Horizon?

Solana (SOL) has captured the attention of investors and analysts as its price charts form a distinctive falling wedge pattern. This technical formation, often seen as a potential trend reversal indicator, has stirred discussions about the future trajectory of SOL’s value. A falling wedge pattern is a common chart pattern in technical analysis, characterized by a contracting range between two trendlines that slope in the same direction. The upper trendline, representing the declining highs, converges with the lower trendline, formed by the decreasing lows.  This pattern suggests a potential bullish reversal, as the price reaches a point of consolidation, leading to an eventual breakout to the upside. Image: Bybit Learn Related Reading: Tron Reverses August Slump As TRX Open Interest Climbs Solana Vies For Bullish Upswing As SOL’s price continues to exhibit this falling wedge pattern, analysts are eyeing a potential bullish upswing in the near future. The recent retest of the lower trendline has intensified demand pressures, potentially setting the stage for a breakout. Price analysis projections point towards a potential recovery that could take SOL’s value towards the overhead trendline or even the $21.55 mark. However, the validity of this pattern relies on the integrity of the two trendlines. While the falling wedge pattern suggests a bullish outlook, a failure to maintain these trendlines could lead to further downward movement. Investors and traders remain cautious, recognizing that as long as the pattern holds, there is a risk of SOL’s value prolonging its descent and potentially reaching the $16 mark. Recent market data from CoinGecko paints a mixed picture, with SOL’s price at $20.32, reflecting a 2.8% decline over the last 24 hours and a 5.2% slump over the past seven days. These fluctuations highlight the inherent volatility in the cryptocurrency market and the impact of various factors on asset prices. Solana (SOL) is currently trading at $20.27. Chart: Solana’s NFT Surge Offers Glimmer Of Positivity Amidst the price struggles, the Solana ecosystem is experiencing a surge in the NFT space, offering a glimmer of positivity for the community. Recent data shared by Step Data Insights reveals that Solana has emerged as a frontrunner in NFT sales volume over the last 24 hours. NEW: Solana leads the growth of NFT Sales Volume, with nearly a 20% rise in the last 24 hours. — Step Data Insights (@StepDataInsight) August 24, 2023 The post highlights a remarkable 20% surge in sales volume for Solana, outperforming major competitor Ethereum (ETH), which only managed a 3.4% increase during the same period. Related Reading: PEPE Token Tumbles 20% Amid Suspicious Activity – Details While technical patterns provide insights, the volatile nature of the crypto market requires cautious optimism. Additionally, Solana’s robust performance in the NFT sector underscores its ability to diversify and adapt in the blockchain landscape. As traders and investors await confirmation of the falling wedge’s influence, the market remains poised for shifts that could shape SOL’s path in the coming days. (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk). Featured image from CoinMarketCap
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This Ethereum Metric Has Sparked Centralization Concerns Over ETH Ownership

Crypto blockchains are designed to be fully decentralized so that no single person or group has control. However, new data has shown that the top 10 Ethereum addresses control over 35% of the total ETH supply. For a network that was designed to be decentralized, this has sparked some serious concerns over how centralized ETH has become.  The 10 Largest Ethereum Addresses Hold Over 35% Of The Available Supply While sharing the metric on social media platform X, crypto market intelligence platform Santiment showed how holdings of the 10 largest Ethereum addresses have now climbed to 35% of the total supply. Related Reading: Shiba Inu Whale Buys 708 Billion SHIB, Sparks Speculation Of Price Recovery This indicates that while small traders have been trying to offload their supply during the recent price crash, many ETH whales are taking the chance to buy the dip.  🐳 The 10 largest addresses on the #Ethereum network are now holding over 35% of the available supply. By no means does this mean the #2 asset in #crypto is suddenly #centralized, but it shows the capitulation of smaller traders showing #FUD from this dip. — Santiment (@santimentfeed) August 25, 2023 Over the past 5 years, the top 10 largest Ethereum addresses have seen their share of the total ETH supply grow substantially. Data shows that these addresses held only 11.2% of the total supply in August 2018, and then rose to 24% in August 2022. The current level means these 10 largest holders have accumulated 11% more in the past year. 📈 #Ethereum has been seeing its top 10 addresses expand and accumulate more and more of the total available coin supply. In 5 years, the top 10 largest addresses have gone from owning 11.2% to now 34.6% of $ETH. The 27.86M $ETH added is worth $51.6B. 😮 — Santiment (@santimentfeed) August 9, 2023 Etherscan, an Ethereum block explorer, shows the top account balances in ETH, with the largest address alone (Beacon Deposit Contract) controlling over 24% of all supply. Next comes in Wrapped Ether at 2.7%.  However, most of the largest ETH holders are cryptocurrency exchanges like Binance and Kraken. One of Binance’s wallets (Binance 7) holds over 1.66%, while the exchange also holds large ETH amounts in other wallets, making it the largest of any single entity.  In comparison, the top 10 addresses of Bitcoin, the largest crypto in the world, own only 5.35% of the total supply. This, of course, does not take into account Satoshi Nakamoto’s Bitcoin cache.   ETH price struggles amid centralization concerns | Source: ETHUSD on  ETH Centralization Concerns? Whales are known to have considerable control over the price movement of cryptocurrencies in the crypto market and large selloffs by these holders can lead to an increase in selling pressure from smaller investors, causing a dump in the price of ETH.  However, considering the largest holder is the Ethereum is the Beacon Deposit Contract used for staking ETH, an increase in the contract spells positive news. More deposits into the contract signal that more investors are depositing to become validators in ETH 2.0. Related Reading: MasterCard Axes Partnership With Binance Amid Regulatory Pressures Interestingly, the number of wallets holding between 10 and 10,000 ETH has risen to 355,000, and 1,788 more 10-10,000 ETH wallets have been added since the beginning of June. Whale transactions in the past week alone have also crossed 23,073 ETH, the highest since May. As for ETH’s price, the token is currently trading at around $1,600, down 11% in the past month. Featured image from iStock, chart from
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