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- Despite gaining over 10% in the last week, Solana price is cracking under pressure from ETH's resurgence and could be vulnerable below $170.
Solana price extended its correction on Thursday, trading at $171 at the time of writing after declining by 2.9%. The crypto coin declined by nearly 4% on Wednesday, and a second successive decline threatens to breach the $170 psychological support mark.
The coin is also under pressure from Ethereum, which has been among the top-performing altcoins, gaining 30% in the last week, thrice as much as Solana’s. Ethereum’s market capitalisation grew by $68 billion in that time frame, about 78% of the value of Solana’s entire market capitalisation.
However, Solana price has strong support from Solana chain’s meme coin ecosystem. Top Solana-based meme coins have been on a strong uptrend in the last week, with WIF gaining 60%, BONK up by 18.5% and PNUT rising by 104% during that period. That means increased utility for SOL for settling transaction fees, adding propulsion to the coin. However, the last 24 hours saw a majority of meme coins turn red, exerting downward pressure on Solana price.
On a positive note, the rising trading volume on the Solana blockchain. The ecosystem led DEX trading volume in the last week, recording 48% surge in that period to hit $27.48 billion. That signals growing investor interest, which will add support to the SOLUSD trading pair.
Solana Price Prediction
The momentum on Solana price calls for a downward action below the pivot mark at $172. The coin will likely find its initial support at $168. A stronger downward momentum will break below that level and clear the path to potentially test $165.
Conversely, going above $172 will signal the onset of bullish control. That will likely see primary resistance established at $175. A break above that level will invalidate the downside narrative. In addition, an extended control by the sellers could take the action lower and test the second hurdle at $178.
