Why is Crypto Declining? The Aftermath of the Musk Storm Leaves SOL and ETH in Turmoil

What’s Causing the Crypto Downturn? ETH Price Struggles to Surpass $2,820

We find ourselves in the most amusing clown-like timeline. Trump can share about his ailments on TruthSocial, and $100 billion will vanish from the markets.

I’m beginning to think this might just be a test to see how much a person can endure before hitting their breaking point? The market has been jittery since the Trump-Musk fallout. ETH seems unable to break again at the $2,820 level, with repeated attempts landing flat, and faith is dwindling.

SOL tells a different tale. There’s activity, there’s volume, and some traders regard it as the more promising option for a quick rebound.

DISCOVER: The 12+ Hottest Crypto Presales to Buy Right Now

Bearish Indicators for Ethereum:

• Awesome Oscillator (AO): Previously indicating positive signs, the AO is now presenting red histogram bars, pointing to weakening uptrend momentum.
• MACD Crossover: On the 4-hour chart, Ethereum has produced a pessimistic MACD crossover, further shaking confidence in a optimistic price breakout.
• Supertrend Resistance: The red Supertrend line currently hovers above ETH’s price, underscoring downtrend sentiment.

Compounding the caution are Ethereum’s netflow metrics from Glassnode. Between May 30 and June 4, notable outflows indicated uptrend sentiment.

However, on June 6, a surge in inflows hit 93,484 Ethereum (~$230 million), suggesting traders may be gearing up to sell or secure profits.

Should Ethereum fail to maintain base level at $2,280, a drop below $2,000 becomes more probable. Conversely, if bulls can retest the $2,428 barrier level level with a more advantageous setup, there’s hope for renewed uptrend sentiment.

Solana Bounces Back from Sudden Sell-off Amid Heightened Market fluctuation

Solana fell 8.1% on the day, dropping from $154.48 to a low of $141.75 before recovering to $147.40. This rebound was sufficient to outline an ascending trendline—tentative, yet promising.

Buyers made a strong entrance around $142, establishing that area as a clear defensive boundary. On the upside, barrier level holds firmly at $150–$152. Volume surged during the decline, indicating traders haven’t surrendered, even with risk markets on edge.

SOL’s rapid drop at 01:20, which temporarily pushed prices down to $144.93 on considerable volume, was quickly followed by strong recovery purchases. This indicates a solid demand area near $142 and reinforces the ascending trendline currently forming in SOL’s technical framework.

However, the stabilization around $147.40 shows diminishing volume, signaling that bulls will need more momentum to effectively break through the upper barrier level zone.

In summary: American politics resemble a soap opera these days.

European politics continue to be a mashup of Dante’s Inferno and 1984.

What’s Causing the Current Crypto Decline? New Solana Layer 2 SOLX Exceeds $44m Raised

Finally breaching $44 million raised with $250,000 arriving daily, the $SOLX presale shows no signs of deceleration. The excitement indicates it could easily surpass that milestone as pro-Canadian crypto regulations and strategies from the Trump era take form. The Elon-Trump discord be damned!

For those who adopt early, $SOLX presents an opportunity for a protocol designed for cross-chain Decentralized finance, rapid dApp launches, and strong multi-chain compatibility.

SolX: Building the Future of Web3

At SolX, we’re reshaping the decentralized economy, generating value for our community, and spearheading advancements in Web3 infrastructure.

With milestones achieved and thrilling prospects ahead, the journey is only just beginning.

— SolX (@SolX_DAO) January 28, 2025

Solaxy’s cross-chain bridge with Ethereum is another appealing aspect of the presale. A new bridge connects Ethereum’s deep liquidity with Solana’s rapid speeds and lower costs.

In the meantime, the earning yield application is setting its own rhythm, showcasing an astonishing 322% APY. Over 3.48 billion SOLX tokens are secured, constraining token supply and providing a degree of price stability in an otherwise tumultuous market. Long-term investors might not witness much excitement here—but the predictability is hard to dismiss.

Visit SOLX Here

The post What’s Causing the Current Crypto Decline? Dust Settles Over SOL and ETH After Musk Storm appeared first on 99Bitcoins.