Solana Price to Retest Key Support Amid Launch of Liquid Staking Tokens

Solana price downfall prolonged into Friday's trading session, registering a 4% intraday loss to reach $136.5. The selling pressure in the altcoin market persists as Bitcoin price struggles to sustain above $60000.

Solana's price dropped 4% intraday on Friday to reach $136.5 as the selling pressure continues in the altcoin market.

However, the launch of liquid staking tokens by major exchanges is expected to generate long-term interest in Solana.

Solana Price to Retest Key Support Amid Launch of Liquid Staking Tokens

Closely following the launch of liquid staking tokens by exchanges, the crypto space has witnessed a lot of interest in staking and re-staking activities. This activity is especially relevant for Solana, given its high token utility and the launch of these tokens.

Recently, the launch announcement was made by the exchange ByBit about bbSOL, a liquid staking token. This move will allow users to stake SOL tokens on ByBit Web3 and get bbSOL tokens in return.

Theڡlaunch of liquid staking tokens by exchanges like Binance (BGSOL) and Bitget (BNSOL) is also on the cards. The introduction of these tokens will boost participation in staking on the Solana Network, ultimately enhancing the network's security and the overall ecosystem's health.

Thus, this development could have a gradual and long-term impact on Solana price rather than an immediate effect.

SOL Price Hints Immenint Rebound with Flag Formation

The Solana price has fallen for six consecutive days, dropping from $162 to $136, marking a 15.8% loss. This bearish pivot signals the continuation of the sideways trend within a flag pattern on the daily chart.

Usually, the pattern denotes a temporary consolidation between two trendlines for the prevailing trend to regain the bullish momentum. If the pattern plays out, the SOL price is up for a 30% rally to $180 before the crucial breakout from the overhead trendline.

However, the relative strength index slipped to 40%, indicating that sellers are the dominant force in the current market.

If the market correction continues, the Solana price prediction suggests a 10% drop to retest the $121 multi-month support, followed by the flag’s lower trendline.

Frequently Asked Questions (FAQs)

1. How will the launch of liquid staking tokens impact Solana's price?

The launch of liquid staking tokens by major exchanges is expected to generate long-term interest in Solana, as these tokens will enable users to earn rewards while helping platforms maintain liquidity.

2. What are the key support and resistance levels for Solana's price?

The key support and resistance levels for Solana's price are $121 and $180, respectively.

3. What is the current technical outlook for Solana's price?

The current technical outlook for Solana's price is bearish, with the price falling within a flag pattern and the RSI indicating seller dominance.

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