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Solana down 14% after inflation figures
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FOMO has been pumping local tokens over the past week
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SOL faces further downside as price rejects 50-day MA
Solana SOL/USD is down 14% in the last 24 hours. The losses have wiped out gains in the week, which now remain at a positive 6.18%. The weekly recovery was fueled by increasing FOMO on the coin and improving sentiment. The cryptocurrency is experiencing a surge in retail interest and was mentioned on social trading groups.
SOL took a hit on Tuesday as the inflation numbers came in at 8.3%, surpassing estimates of 8.1%. Inflation was still below the previous 8.5%, but it must have shook the markets. Eyes will not be on the Fed, which is expected to tighten policy to contain prices.
After the latest drop, Solana is hovering around $33. Despite that investors are viewing the smart contract platform as a true competitor to Ethereum. Frequent hacks are responsible, which the founder recently commented on.
Anatol Yakovenko said that Solana’s frequent network outages are like a curse. However, he says the security of the network is yet to be compromised. Yakovenko says that the outage has been caused by overcrowding caused by users entering the network.
Solana rejects 50-day MA as price falls
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Source – TradingView
From the daily chart, SOL is trading below the 50-day MA but above the 20-day MA. MACD indicator is bullish, but momentum is declining. After weak sentiment following inflation data, SoL is facing further downside.
summary
Solana is trading low at $33 after rejecting the 50-day EMA. A weak sentiment could lead to further downside in the prices. The next support is at $30.5.