As we move through the final months of 2024, the cryptocurrency market remains a dynamic space filled with both challenges and opportunities. Two cryptocurrencies that are drawing significant attention from analysts and investors alike are Solana (SOL) and Mpeppe (MPEPE). While Solana (SOL) has faced a tough year, marked by volatility and declining user engagement, Mpeppe (MPEPE) is emerging as a promising contender in the meme coin market. Analysts are closely watching these two tokens, each representing different segments of the crypto market, for potential gains in the coming months.
Solana (SOL)’s Struggle to Reclaim Support
Solana (SOL) has been one of the most talked-about cryptocurrencies this year, but not always for the right reasons. After an impressive run in 2023, 2024 has been a year of significant challenges for SOL. The token has recently slipped below the $130 mark, marking a 20% decline over the past 11 days. The $125 support zone, which has been a critical level for bulls, is now under severe pressure.
The broader market downturn has not spared Solana (SOL), with active addresses on the network dropping sharply. From a peak of 33.15 million in July, active addresses have plummeted to just 11.1 million in August. This decline in user engagement is a worrying sign, as it could foreshadow further price erosion. If SOL fails to hold the $125 level, it could slide to the next significant support zones at $110 and $100—levels that have previously provided strong support earlier in the year.
The Technical Outlook
From a technical perspective, Solana (SOL)’s price action hints at deeper troubles. A looming death cross between the 50-day and 200-day EMAs signals a potential breakdown rally, adding to the bearish sentiment. However, there is a glimmer of hope in the form of a bullish divergence in the daily RSI, which hints at a possible double-bottom reversal. For this bullish scenario to materialize, SOL would need to reclaim its 200-day EMA at $140 and its 50-day EMA at $147. A breakout above $163, the peak of previous double-top formations, would signal a potential trend reversal.
Adding to the complexity is the steady offloading by Solana (SOL) whales. A major holder has sold 695,000 SOL since January, valued at $99.5 million, though they still hold a substantial amount of 1.88 million SOL. This ongoing liquidation suggests further downside…
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