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<p>Crypto analyst CryptoCache has shared an analysis for <a href="https://captainaltcoin.com/cardano-ada-vs-solana-sol-which-crypto-is-better-to-hold-in-2025/" target="_blank" rel="noopener noreferrer nofollow">Solana (SOL)</a>, warning of potential market headwinds ahead. The analysis examines multiple technical indicators and market factors that suggest traders should maintain a cautious stance in the current environment.</p>
<h2 class="wp-block-heading" id="strong-solana-token-unlocks-and-market-pressure-strong"><strong>Solana Token Unlocks and Market Pressure</strong></h2>
<p>The first quarter of 2024 brings scheduled token unlocks for Solana across January, February, and March.&nbsp;</p>
<p>These planned releases stand to affect market dynamics through increased supply. CryptoCache advised caution, stating that the unlocking events might weigh heavily on Solana’s price movement soon.</p>
<p>Technical indicators paint a conservative outlook, with resistance levels established between $235-$237 and support zones hovering near $213-$215. These support levels have been broken, with <a href="https://www.coingecko.com/en/coins/solana" target="_blank" rel="noopener noreferrer nofollow">SOL trading at $207.53</a>, down over the past day and week. This further indicates the bearish momentum in SOL’s trajectory.</p>
<p>Moreover, the market structure shows bearish signals across various metrics. The Relative Strength Index sits below the 50 mark, while the Money Flow Index reveals limited capital inflows.&nbsp;</p>
<p>Both the stochastic oscillator and MACD divergence suggest downward momentum could continue.</p>
<h2 class="wp-block-heading" id="strong-strategic-trading-considerations-strong"><strong>Strategic Trading Considerations</strong></h2>
<p>CryptoCache’s analysis emphasizes risk management in the present market conditions. The examination warns against establishing long positions without clear confirmation above $230.&nbsp;</p>
<p>A key liquidation zone exists at $209, where market volatility could spark rapid price movements. Market maker activity also plays a notable role in current trading patterns.&nbsp;</p>
<p><em>“There’s no doubt that Solana is being held down pretty big by some market makers,”</em> CryptoCache states in the analysis. The market structure has led to recommendations for reduced position sizes and conservative leverage use.</p>
<p><strong><em>Read also: </em></strong><a href="https://captainaltcoin.com/why-is-the-crypto-market-down-today-38/" target="_blank" rel="noopener noreferrer nofollow"><strong><em>Why Is the Crypto Market Down Today?</em></strong></a></p>
<h2 class="wp-block-heading" id="strong-external-market-influences-strong"><strong>External Market Influences</strong></h2>
<p>The Federal Reserve announcements have emerged as a key factor for crypto market movements. The announcements have already injected further volatility, with the broader market undergoing a <a href="https://www.fxstreet.com/cryptocurrencies/news/crypto-market-bleeds-following-hawkish-rate-cut-decision-by-fed-202412190205" target="_blank" rel="noopener noreferrer nofollow">price correction today</a>.</p>
<p><a href="https://www.financemagnates.com/cryptocurrency/why-is-bitcoin-down-today-btc-price-sees-sharpest-drop-in-135-days/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin’s performance </a>continues to drive altcoin market direction, including Solana’s price action. This relationship prompts CryptoCache to advise traders to exercise particular care during such Fed meetings.</p>
<p>The analysis suggests spot market participation might present lower risk compared to leveraged exposure. The expert notes that traders should monitor Bitcoin’s movements as a leading indicator for potential market shifts.&nbsp;</p>
<p>“Bitcoin sneezes, and a lot of altcoins will rip down,” CryptoCache notes, underlining the market’s interconnected nature.</p>
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<p>The post <a href="https://captainaltcoin.com/solana-sol-price-could-dip-further-heres-why/" rel="noopener noreferrer nofollow">Solana (SOL) Price Could Dip Further – Here’s Why</a> appeared first on <a href="https://captainaltcoin.com" rel="noopener noreferrer nofollow">CaptainAltcoin</a>.</p>

Solana (SOL) Price Could Dip Further – Here’s Why

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