Solana price nosedived on Monday morning, erasing most gains it made during the weekend. SOL crashed to a low of $32.37, the lowest level since November 4 of this year. It has crashed by more than 16% from its highest level during the weekend. So, is it safe to buy the SOL dip?
Solana and Google partnership
Solana price surged during the weekend after Google unveiled its Blockchain Node Engine product as part of its Google Cloud service. In a statement, the company said that its new product will help Web3 organizations in a number of ways.
For example, they will leverage Google’s scale to provide streamlined provisioning, secure development infrastructure, and fully managed operations. Ethereum will be the first network to take advantage of this service.
Google is also partnering with Solana to bring it to BigQuery. The partnership will see Solana developers take advantage of Google’s infrastructure. As such, it will be easy for anyone to launch a dedicated Solana node in the cloud. Google Cloud is also running a block-producing Solana validaor to participate in and validate the network.
As part of these developments, Google is hiring Solana specialists to help it in the development. The minimum qualifications are experience with multiple blockchain protocols like Solana, Cosmos, and popular DeFi protocols.
So, why is Solana price crashing? A likely reason is that weekend buyers are now in a distribution phase as they take profits. The decline is also in sync with that of other cryptocurrencies like Ethereum and Bitcoin.
Solana price prediction
The four-hour chart shows that the SOL price has been in a strong bearish trend in the past few days. This decline saw it crash below the key support levels at $35.45 and $34.37. These were the highest levels on September 27 and October 31st, respectively. The coin has also moved below the 50-day moving average while the Relative Strength Index (RSI) has moved below the neutral point.
Therefore, the path of the least resistance for Solana price is lower, with the next reference level being at $30. The stop-loss of this trade will be at $33.50. Subscribe to our highly acclaimed S&R indicator for up-to-date signals of key assets.