Key takeaways
- SOL is down 10% as the broader crypto market experiences another massive sell-off.
- The bearish performance comes despite Sharp Technology raising $400 million for its Solana treasury.
SOL is the worst performer in the top 10
SOL, the native coin of the Solana blockchain, is the worst performer among the top 10 cryptocurrencies by market cap. The coin lost 10% of its value in the last 24 hours and is now trading at $187 per coin.
The bearish performance comes as the broader crypto market experienced another sell-off, with BTC dropping below $110k, while Ether dipped to the $4,400 region.
SOL’s dip also comes despite Nasdaq-listed firm Sharps Technology (STSS) raising $400 million to establish what it says could become the largest corporate digital asset treasury of Solana.
The funding received backing from some of the most active investors in digital assets, including ParaFi, Pantera, FalconX, CoinFund, and Arrington Capital. The company sold its shares at $6.50 per unit with attached warrants exercisable at $9.75. Sharps Technology plans to allocate the funds primarily toward acquiring SOL, the native token of the Solana blockchain.
Sharps Technology is not the only company stacking SOL, with SOL Strategies (HODL), DeFi Development (DFDV), and Upexi (UPXI) already heavyweights.
SOL could reclaim $200 amid market recovery
The SOL/USD 4-hour chart is bearish and efficient thanks to Solana’s recent poor performance. The technical indicators are neutral but could soon change if either the bulls or bears take control of the market.
The RSI of 54 shows that the buyers are losing control, while the MACD lines could slip into the bearish territory if the sell-off persists. At press time, SOL is trading at $188 per coin, up from the recent low of $185.
If the recovery continues, SOL could reclaim the resistance level at $213 over the next few hours or days. An extended bullish run would see SOL attempt to hit the $220 resistance zone.
However, the market structure is still bearish, and SOL could record further losses. If that happens, SOL could drop to the support level at $174 created on August 19. Failure to defend this level could see SOL hit the monthly low of $152.