The cryptocurrency market remains bearish today, with Solana down more than 12% in 24 hours. Solana’s native token, SOL it fell 3% on December 19th, due to significant corrections in the broader market.
This bearish moment comes after that the Fed announced a cut of 25 basis points of key rates: Powell’s comments after this event triggered the sell-off, as he argued that only two more rate cuts would occur in 2025.
The current situation does not affect the presale of SolaxySolana’s new Layer 2 blockchain project, which has well surpassed $3 million within days of launch.
The crypto market collapses and SOL suffers
Solana corrects along with other cryptocurrencies, which are also declining, following comments from the Federal Reserve chairman Jerome Powell on the economic prospects for 2025. Bitcoin (BTC) fell by 6.52% in the last 24 hours, while ETH it has fallen by more than 10.56% in the last 24 hours, settling at $3,288.
Also other top-cap cryptocurrencies, including BNB, XRP e Dogecoin have recorded significant losses in the last 24 hours. Among the worst today there is Uniswap (UNI)down more than 17% over the past day. Similarly, the total cryptocurrency market capitalization fell by 7.91% in the last 24 hours to $3.25 trillion.
The drop in cryptocurrency prices comes after the Fed announced a 25 basis point cut to its benchmark rate. It was Powell’s comments after the rate cut that sparked the selling, as he said there would only be two more rate cuts in 2025.
The Fed committee also raised its inflation forecast for 2025 from 2.1% to 2.5%, reinforcing what market participants see as an aggressive forecast.
Regarding Bitcoin’s reserve status, Powell said that the US central bank has no intention of getting involved in any government attempts to accumulate Bitcoin.
“We are not allowed to own Bitcoin,” Powell said, adding that the Fed is “not looking for a change in the law” that would allow them to hold BTC.
Will Solana continue to collapse?
Solana’s Total Value Locked (TVL). has been in a downtrend for the last week: according to data from DefilLlama it has fallen by 4.5% in the last seven days, from $9.37 billion on December 12 to $8.9 billion.
Solana total value locked. Source: DefiLlama
This decline in TVL occurred in tandem with the decline in the price of SOL, which fell by more than 9% over the same period. Looking more closely at Solana’s TVL decrease, several Layer 2 protocols, such as Jito from Sanctumhave recorded substantial losses over the past seven days, contributing to the decline in the value of the underlying network.
The decline in TVL also reflects declining interest from traders, so Solana appears to be struggling to attract new users despite its low transaction costs. Since November 20, the amount of daily transactions on the Solana blockchain has almost halved.
This indicates pent-up network activity and less overall user interaction with the platform, resulting in lower commission revenue.
So Solana will continue to collapse? The relative strength index (RSI) of SOL has fallen below the 50 level, affirming the dominance of sellers in the market. Bears now focus on the immediate support zone between $190 and $200, hugged by the 100-day EMA and further by the 200-day EMA around $175.
Missing this level would likely see SOL price fall towards the neck line of the prevailing chart pattern at $130. A daily candle close below this level will confirm the continuation of the downtrend, with the next logical move towards the psychological level at $150.
On the upside, staying above $200 would signal the inability of sellers to extend the downtrend. If this happens, SOL could rise above the $215 and $230 zone and further to the pattern high at $264, invalidating the bearish outlook.
Meanwhile, the presale of Solaxy, a new project built on Solana, surpasses $3 million in presales within days of launch.
Solana’s new Layer 2 blockchain presale, Solaxy, surpasses $3 million
The current situation of the crypto market, which sees SOL suffering significantly, does not affect the presale of Solaxy (SOLX)a new project that wants to become the prima blockchain Layer 2 of Solana, to improve characteristics such as speed.
$SOLX, native token of the project, has already raised over $3 million a few days after launch. If this innovation is enjoying so much success it is because the project wants to build a blockchain that processes off-chain transactions, groups them and subsequently ensures that they are settled on Layer 1.
This provides users with higher transaction speeds and zero downtime; Furthermore, developers can use modular toolkits to create new applications.
Solaxy makes staking available to investors, already active during the presale, to earn a current APY of 1,096%. The project’s tokenomics is well distributed, with the total token supply amounting to 138 billion SOLX, split with 25% allocated to community rewards, 30% to ecosystem development, 20% to marketing, 10% for listing on exchanges and 15% for project development.
Plus SOLX is a multi-chain tokenwhich also allows users of Ethereum, Solana and the Binance Smart Chain (BSC) to participate in the presale: to purchase the tokens, at the current price of $0.001572, simply visit the project’s official website and connect your crypto wallet to it and trade ETH, BNB, SOL or use a bank credit card.
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