Solana holders are gearing up for Breakpoint Conference, scheduled for September 20 and 21 in Singapore. SOL holders have their eyes peeled for the event as it brings together developers and the community of web3 projects on the Solana chain.
Solana trades at $136.05, early on August 31, at the time of writing. The token of the smart contract network could extend losses by nearly 5% to sweep liquidity at the support at $130. This is a key support level for the altcoin.
The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars under the neutral line. SOL could extend losses into the Fair Value Gap (FVG) between $119.06 and $125.61.
SOL/USDT daily chart
If Solana sees a daily candlestick close above key resistance at $148, it could invalidate the bearish thesis and SOL could extend gains to $160. This marks the 50% Fibonacci retracement level of the decline from the March 18 top of $210.18 to the August 5 low of $110.
Analysts expect Solana Breakpoint 2024 to serve as a catalyst for the bull run. A similar outcome as 2023 is expected, even if the meme coin engine that is the SOL chain, may have run out of steam. While meme coins led gains in the first half of 2024, their performance is eclipsed by other sectors and it is likely that traders have turned cautious in response to macroeconomic events.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.