Pakinomist – has seen a sharp drop of 21% over the past three days, erasing some of the impressive gains from the recent rally. This sudden turnaround is partially attributed to the meme coin frenzy, which initially boosted Solana’s ecosystem, but has now turned into a liquidity drain, leaving the asset vulnerable to a sell-off.

Increased network activity and intense speculative interest in meme coins based on the Solana blockchain helped SOL reach its recent high of $295. But the momentum stalled and SOL is currently trading near its 50 EMA at $238. A break below this level, which is currently at $240, could expose SOL to further downside risks, but it also acts as immediate support.

The Solana meme coin rally played a major role in its bullish run, drawing speculative inflows to projects that took advantage of Solana’s low fees and high throughput. However, bearish pressure is being created as the same liquidity that drove SOL higher is now disappearing as the hype wears off.

Because of this change, Solana is now vulnerable, underscoring the dangers of relying too much on passing speculation. Restoring the $260 resistance and holding the $240 support level is necessary for SOL to get back on track. Restoration of bullish momentum with a move above $260 may retest the $280-$295 range. On the downside, if SOL is unable to hold $240, it could drop towards $213, which is in line with the 100 EMA and a key support area from the December consolidation.

‘s questionable trend

Bitcoin has hit a critical resistance level of $102,000 and has struggled to break through despite a generally bullish market trend over the past few weeks. The cryptocurrency’s inability to make a decisive move past this level highlights several factors currently holding it back.

The slowdown in the institutional approach is an important contributing factor. Institutional investors made a significant contribution to Bitcoin’s recent rise. However, as the market euphoria wears off, this momentum appears to be waning. Additionally, the general enthusiasm for meme coins and altcoins that fueled the early stages of this rally has waned. Because of this, overall liquidity and inflows into Bitcoin have lagged, resulting in a period of consolidation for the cryptocurrency.

Bitcoin is currently trading just above its 50 EMA, which has acted as a support level in this uptrend. Still, trading volume has fallen, indicating traders are unsure of their next move. The fact that the RSI is still neutral suggests that there are neither overbought nor oversold conditions at this time, but it also suggests that there is not enough momentum to move up.

It will take new buying pressure for Bitcoin to exit this range, possibly caused by a resurgence of institutional interest or a fresh market catalyst. Bitcoin risks retracing to retest lower support levels like $98,000, which corresponds to the 100 EMA, if it is unable to clear $105,000.

The general enthusiasm of the market has also been affected by the slowdown in the performance of the meme coin. Earlier in the rally, Bitcoin indirectly benefited from the influx of new players brought in by the meme coin’s explosive growth. Now that there is less speculative activity, Bitcoin is in a more difficult situation.

is fine

Dogecoin has faced a steep 20% drop in its price over the past few days, causing concern among investors. However, a closer look at the technicals suggests that this drop may not spell disaster for the popular meme coin.

With Dogecoin down 20% from its recent high, investors are beginning to wonder where the meme coin will go. Despite the decline, there is still cause for optimism regarding DOGE’s overall market position and possible recovery in the coming weeks.

During its recent rally, DOGE reached a high of $0.50 before falling to a crucial support level near $0.36. This retracement is consistent with the market as a whole cooling off after a period of heightened volatility, particularly in the meme coin space. With its current price hovering around $0.38, DOGE is showing stabilization as it continues to stay above the rising trend line that has maintained its rise since October.

In addition, DOGE’s relationship with Bitcoin and general market patterns imply that any upswing in the price of BTC can have a favorable effect on Dogecoin. If the general sentiment in the market improves, DOGE could benefit from new inflows as long as institutional interest in cryptocurrencies remains stable.

In the near future, Dogecoin’s price is likely to settle into a new base around the $0.36-0.40 range. The next significant price move could be indicated by a breakout or breakdown from the $0.40 resistance and $0.36 support levels, so traders should keep a close eye on these levels.