Solana (SOL) and Dogecoin (DOGE) are currently facing downward pressure as the wider cryptocurrency market follows Bitcoin’s price decline.
As Bitcoin (BTC) hovers around the $66,000 mark, Solana’s price is flirting with a crucial level, while Dogecoin is trading lower in line with other altcoins.
Solana’s price has dropped by nearly 9% in the last 24 hours, bringing it below $150. This decline has pushed the 5th-ranked altcoin by market cap to a critical zone, with analysts suggesting that SOL’s price is at a “make or break” point.
The daily trading volume of Solana has surged by 113% in the past 24 hours due to the crypto market crash, giving the advantage to the bears. At the time of writing, the coin’s market cap has decreased by 8% to $68.6 billion.
Similarly, Dogecoin, the original dog-themed memecoin, has revisited support levels below $0.14, with trading data showing a 6% drop as it hit lows of $0.134.
According to CoinMarketCap, DOGE’s 24-hour trading volume has increased by 78% to $1.26 billion, while its market cap has shrunk by over 5% to $19.9 billion.
An analyst known as CrediBULL Crypto suggests that the increase in trading volume indicates heightened network activity, but the significant price declines suggest a short-term advantage for the bears.
CrediBULL Crypto states, “Both SOL and DOGE are at critical levels, and a potential drop to the buffer zone formed earlier this year is the most likely scenario before a rebound occurs.”
Despite the bearish outlook in the short term, the analyst believes that SOL and DOGE could bounce back if Bitcoin sees a positive reversal.
Bitcoin’s price also experienced a slip, with analyst Willy Woo predicting a potential drop to $62.5k before a reversal that could lead to a new high.
As the market eagerly anticipates Fed Chair Jerome Powell’s speech after the FOMC meeting on Wednesday, Bitcoin’s price dipped to lows of $66k on Tuesday.