Solana in Danger of Collapse: Analysis and Forecasts

Solana is showing some worrying signs as it approaches a possible collapse. After a strong advance in April, SOL has slowed down near a crucial resistance level: the 200-day moving average, which is currently around $162. This level is typically used to distinguish between bullish and bearish trends, so the recent drop raises questions about the future of the altcoin.

The price action of SOL suggests that it has failed to maintain its upward trajectory. Buying pressure appears to be fading rapidly, as evidenced by the apparent break below support of the ascending trendline that has supported the rally from late March to the present. Combined with an increase in selling volume, the pattern suggests that a more significant correction may be imminent. From a technical point of view, the relative strength index, or RSI, has started to break out of the overbought zone, suggesting that sellers are taking control and momentum is waning.

The next important area to monitor is around $120, which represents a psychological and technical support zone if Solana fails to find strong support at these levels. Overall market sentiment is also important. If Ethereum and Bitcoin continue to weaken or fall, Solana's volatile position could deteriorate quickly.

SOL could continue to correct if there is no renewed buying interest and significant volume to bring it back towards $160. Traders and investors should remain cautious for now. If the asset fails to regain important levels and resume its bullish trend in the coming sessions, Solana's rapid rise could come to an abrupt halt.

Bitcoin is back

Bitcoin is showing renewed strength as it races towards the long-awaited $100,000 level. After a period of consolidation, the liquidity dynamics observed in the market and strong technical patterns are encouraging the cryptocurrency's return. Important moving averages such as the 50-day and 100-day exponential moving averages (EMAs) have recently been breached by Bitcoin, turning into possible support levels in the price chart.

The breakout and the significant increase in trading volume show that despite the recent turbulence, buyers are regaining confidence and are ready to push Bitcoin higher. What is even more interesting is that the liquidity map shows a significant accumulation of liquidity just above and below the current price. There are huge pockets of liquidity around the $96,000 and $94,000 levels.

This creates an environment where price changes can happen quickly. When liquidity accumulates at certain price points, it pushes the price in that direction as traders' stop losses are triggered.

If the bulls manage to push out the bears, Bitcoin could easily register a significant rally given these liquidation clusters. In particular, if the $96,000 barrier is breached, the current market setup indicates an ideal springboard to the psychological $100,000 level. However, caution is called for. Both gains and losses can occur quickly due to the high liquidity.

XRP blocked

The next big move of XRP could be determined by this tipping point.

After weeks of slow trading and difficulty generating momentum, XRP is now hovering around a crucial technical level: the 100-day exponential moving average (EMA). According to the chart, XRP managed to break the upper boundary of the descending wedge in which it has been stuck for months.

This pattern usually indicates a possible breakout. However, the level of the 100 EMA, with which XRP has been struggling for several days without prevailing, is a major obstacle for the cryptocurrency. The fact that trading volumes are starting to increase indicates that traders are preparing for a bigger move. A spike in buying pressure could push XRP's price significantly higher towards the next resistance zone, which lies around $2.50, if XRP manages to hold above the 100 EMA.

Conversely, if XRP fails to break this level, it could return to consolidation or even experience a corrective retracement, with support levels at $2.18 and $2 coming back into play. Due to the neutral value of the RSI indicator, XRP has every chance of rising without immediately facing an overbought situation.