Solana Drops Close To 20%, Imminent Rebound Or Start Of Correction?
September 20 2021 - 12:41PM
NEWSBTC
Solana has been caught in the crossfire as investors woke up to a
bloody Monday due to hurdles in the Asian markets. The top
cryptocurrencies by market cap are in the red recording moderate to
heavy losses in the 24-hour chart. Solana Follows The General
Sentiment In The Crypto Market At the time of writing, Solana (SOL)
trades at $143,53 with a 10.9% loss in the daily chart. In the
weekly chart, the cryptocurrency is amongst the worst performers on
the crypto top 10 with a 17.9% loss. After Solana, Polkadot (DOT)
is the closest to record similar losses for the weekly chart with
17.6%, followed by Cardano (ADA) with 17.1%, XRP with 16.5%, and
Binance Coin (BNB) with an 11% over the same period. Bitcoin and
Ethereum outperformed other cryptocurrencies on the weekly chart,
with BTC recording only a 4.7% loss. Solana dropped during the
weekend following a long period of profits and an-all time high
north of the $200 mark. As it has happened in the past, investors
seemed to favor BTC and ETH, the largest cryptocurrencies, in
expectations of further downside in the macro-economic outlook due
to the potential risk of default by Chinese real estate developer
titan, Evergrande. Related Reading | Bitcoin Price Sinks 10% As
Market Braces For Macro Storm Ahead As seen below, the China 5-year
credit default swap has increased, according to data shared by
ZeroHedge. This suggests that many investors are betting on the
possible failure to honor its financial commitments by the Asian
giant. However, Primitive Crypto founder Dovey Wan believes the
opposite. Commenting on the Evergrande situation, Wan highlighted
that the Chinese market and its companies operate differently than
those in the West. Therefore, she expects the situation with the
real estate to not escalate to the point of Lehman Brothers, the
financial services firm that defaulted in the U.S. during the 2008
economic crisis. Wan said: Evergrande is not a vapor financial co,
tho it’s high leveraged real estate developer sill retains good
trunk of property/lands+ good cash flow biz like property mgmt co
on its book. The situation can trigger macro panic but the
substantial threat is far less than Lehman. Bitcoin Holds The Key
For Solana In The Short Term? In previous bearish momentum for the
crypto market, most of the assets followed Bitcoin. Therefore,
BTC’s price could determine what happens to Solana in the near
future. BTC stands on critical support in the daily, trading at
$43,855, and could find its next support in the high area of
$30,000 potentially returning to its previous range. Related
Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC
Trading Course However, Solana (SOL) has demonstrated resilience in
that scenario, and it could potentially become one of the few
cryptocurrencies capable of enduring another major sell-off.
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