In an astonishing display of cryptocurrency volatility, a Solana-based meme coin called SHROOM has catapulted a trader to an $8.9 million profit within a mere hour. The transaction details, provided by Lookonchain, reveal that the trader initially invested 6,000 SOL to acquire 292.16 million SHROOM tokens. Shortly after, the same trader sold off the SHROOM holdings for a staggering $9.93 million, securing a swift and substantial financial gain.
SHROOM stands among the plethora of meme coins that have recently surfaced on the Solana blockchain. These digital assets, often characterized by their whimsical nature and community-driven value, have been making headlines for their rapid price movements. For instance, the BOOK OF MEMES (BOME) coin was previously spotlighted by BTC Politan for its impressive 12% price surge, rewarding its investors handsomely.
As of the latest updates, SHROOM’s valuation has skyrocketed by 579% in just 24 hours, as reported by DEXScreeener. Despite peaking at a market capitalization of $60 million, the coin has since experienced a pullback, with its market cap settling at $34.2 million at the time of writing.
The burgeoning meme coin sector, however, has not been sufficient to reverse the downward trend of Solana’s native token, SOL. The cryptocurrency had previously aspired to breach the $200 mark, but bearish forces prevailed on March 18, leading to a 4.29% decline in its value within a day.
Bearish Signals For Solana
Technical analysis of the 4-hour chart paints a grim picture for SOL, with the price action indicating a loss of the $177.97 support level. Attempts by bulls to initiate a rally towards the $250 threshold were thwarted, with resistance at $195.65 ensuring the failure of the breakout effort. The current market conditions suggest that bears have taken the reins, directing the trajectory of SOL without opposition from bulls.
The likelihood of an imminent reversal appears slim, and should the bearish trend persist, SOL’s price could tumble to the local support level of $149.20. The Money Flow Index (MFI), a tool used to gauge the flow of funds into and out of an asset, corroborates this bearish sentiment. The MFI reading stands at 27.48, indicating a dominance of selling pressure over buying activity.
The MFI also serves as an indicator of overbought or oversold conditions. A reading of 80 suggests an overbought state, while a figure near 20 signals an oversold scenario. In the case of SOL, a continued sell-off could depress the MFI further. However, reaching the 20.00 mark might trigger a price reversal to the upside.
Adding to the bearish indicators, the Awesome Oscillator (AO) hints that a rebound for SOL is unlikely until the price dips further. The negative AO reading suggests a decrease in momentum, with the possibility of the price sliding below $150. Nevertheless, if the mid-term outlook improves, SOL could potentially rally towards the $250 region.
Related Reading | BitMEX New Trading Pairs Launch As XRP Faces A Steep Price Drop
Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
Comments (No)