Solana’s price slide continued on Friday’s trading day, recording a 4% intraday loss to $136.5. Selling pressure in the altcoin market persists as Bitcoin’s price struggles to stay above $60,000. Will sellers tighten their grip next September?
Solana Price to Retest Major Support Amid Liquid Staking Token Launch
The Solana ecosystem is seeing renewed interest in staking and re-staking activities, with major exchanges launching new liquid staking tokens to meet the growing demand. Recently, cryptocurrency exchange ByBit announced the upcoming launch of bbSOL, a liquid staking token. This change allows users to stake SOL tokens on Bybit Web3 and receive bbSOL tokens in return.
Despite the announcement, Solana’s price fell below its 200-day exponential moving average (EMA) on Thursday.
Liquid staking allows users to earn token rewards while also helping platforms maintain liquidity, creating a mutually beneficial scenario. Stakers can leverage these reward tokens in other DeFi applications without having to stop staking.
In addition to Bybit’s initiative, other major cryptocurrency exchanges such as Binance and Bitget are likely to launch their own staking tokens, BGSOL and BNSOL, respectively. The introduction of these tokens will promote staking participation on the Solana Network, increasing its security and the overall health of the ecosystem.
As such, this development could have a gradual and long-term impact on Solana’s price, rather than an immediate effect.
SOL Price Hints at Imminent Recovery with Flag Formation
Solana price, which has been falling for six consecutive days, has fallen from $162 to $136, representing a loss of 15.8%. The bearish reversal signals the continuation of the sideways trend within a flag pattern on the daily chart.
The pattern typically creates a temporary consolidation between two trendlines for the prevailing trend to regain bullish momentum. If the pattern holds, SOL price is poised for a 30% rally to $180 before a crucial break of the upper trendline.
If the market correction persists, Solana price prediction points to a 10% decline to retest the multi-year support at $121, followed by the lower trendline of the flag.