- Solana (SOL), Dogecoin (DOGE) Slide as Trader Warns of Further Bitcoin (BTC) Correction
- The CoinDesk 20 index, which tracks major tokens minus stablecoins, slumped just over 4.5%
- Crypto Bulls See $400M Liquidations as Solana, Dogecoin Lead Slide in Majors
The CoinDesk 20 index, which tracks major tokens minus stablecoins, slumped just over 4.5%. Solana‘s SOL token fell over 7% while dogecoin lost over 8% in 24 hours. The moves lower come as bitcoin struggles to hold above $20,000 support.
Market Update
Bitcoin fell below $20,000 support, adding to pressure across cryptocurrencies. The top cryptocurrency by market value was last seen changing hands near $19,700, representing a 5% drop on the day, according to CoinDesk data.
Ether, the second-largest cryptocurrency, fell over 8% to $1,050. Dogecoin, the meme coin created as a joke in 2013, fell over 8% to $0.057.
Meanwhile, Solana’s SOL token is down over 7% in the past 24 hours. The token had rallied earlier this month amid optimism about Solana’s prospects as an ethical and fast blockchain.
Trader’s Warning
“The technicals are warning of new lows,” Katie Stockton, founder and managing partner of Fairlead Strategies, said in a LinkedIn post. “Bitcoin is back below its 200-day moving average after a lower high and higher low sequence that failed to break a downtrend.”
According to Stockton, a drop below $20,000 would expose the June low of $17,622.
Price Levels
Immediate support is seen at $19,500, which, if breached, would expose the psychological level of $19,000. On the higher side, resistance is seen at $20,000. The relative strength index (RSI) on the daily chart is below 50, indicating a bullish-to-bearish trend change.
Conclusion
In summary, bitcoin and major altcoins sold off as technical charts warned of continued price weakness. Key support levels were breached, including the 200-day moving average on bitcoin. Traders are watching to see if prices will continue to decline to new lows.
