- After a strong December fueled by a 120% price surge, Solana has faced correction and profit-taking, dropping from $123 to $105.
- While Solana dipped, Binance’s BNB saw a 9% rise on December 29th, reclaiming its spot as the 4th largest cryptocurrency.
- Despite predictions of further decline, Solana shows potential for another year-end rally with support around $98.
- Breaking above the $123 resistance is crucial for Solana to confirm bullish control and aim for a new target of $150.
- Overbought indicators and price hitting a wall suggest a potential correction for BNB, with retesting between $285 and $265 likely.
Solana, after turning out to be one of the best-performing cryptocurrencies overall in December, SOL has been in a decline for the last few days and is now starting to lose supporters.
The cryptocurrency, so far, has dropped from a high of $123 before Christmas, to around $105 at the time of writing.
Moreso, Solana has also lost its coveted fourth place in the market cap ranking, to Binance’s BNB.
Solana’s December Rally and Retrace
December was a great month for SOL, as it increased by almost 120% and peaked on December 26.
However, the excitement quickly crashed and burned as Solana experienced some post-Christmas profit-taking and correction.
On December 28, SOL’s price dropped below $110 and then marginally recovered to about $105, before hitting $107 where it currently sits.
SOL, which was miles ahead of BNB in December, has also lost its footing and has now been relegated to the 5th largest cryptocurrency by market cap.
BNB, on the other hand, staged a strong comeback on Dec. 29, jumping by 9% and reclaiming its position as the fourth-largest cryptocurrency by market cap.
At the time of writing, BNB is also trading at around $317 and is currently up by about 17% over the last week.
Solana Enters A Year-End Decline
Contrary to the bearish predictions on SOL, the cryptocurrency has registered a 2.7% price increase over the last day and is still up by about 16% over the last week.
The chart below even shows that SOL may have found support somewhere around $98 (red line).
This means that SOL may be poised for yet another year-end rally, using $98 as a base.
Solana, as shown, is as bullish as any cryptocurrency can be. However, to fully confirm that the bulls have taken control of Solana’s price, the $123 resistance stands as a fairly strong obstacle, and SOL must first break above, for a new target of $150.
The daily RSI, on the other hand, is on the verge of crossing over into overbought territory, adding another layer of uncertainty to Solana’s price action.
BNB, On The Other Hand, May Be Bearish
BNB’s bullishness over the last few days has helped it beat SOL and become the 4th largest cryptocurrency again.
However, BNB appears to have hit a wall and is now printing one red candlestick after another.
Moreover, the daily RSI is also strongly overbought, leading us to believe that BNB might retrace and retest anywhere between $285 and $265.
If this outlook is valid and BNB is indeed corrective, while Solana aims for $150, we might see a lot more of a power struggle between both of these cryptocurrencies, as both fight for position as the 4th largest crypto by market cap.
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