• Solana (SOL) and Polygon (MATIC) are two of the fastest-growing altcoins in the market, experiencing a promising upward rally.
• Recent market sentiments have caused a potential downtrend in the near future, as both SOL and MATIC are following the market trend.
• If the SOL price fails to hold its pivot area at $26-$29, it may plunge the asset below its 23.6% Fib level.
The altcoin market has recently been experiencing an unexpected downtrend after a promising upward rally, giving bearish woes to investors‘ portfolios. Two of the most talked-about altcoins, Solana (SOL) and Polygon (MATIC), are no exception, as they are following the ongoing market trend and developing a possible downtrend in the next few days.
Solana and MATIC are two of the fastest-growing altcoins in the market that have made a significant recovery rally after forming a price bottom in November. Since the beginning of 2023, these altcoins have caught investors‘ attention and have been making headlines for their impressive performance. However, the bearish market sentiments have jeopardized the upward rally, and many investors are concerned about their future performance.
SOL price has been able to hold its trend above the $22 mark, which it gained a week ago. However, the next challenge for the altcoin is at $28.2, as a rejection near this level may plunge the asset below its 23.6% Fib level. As of writing, Solana trades at $24.18, declining nearly 1% in the last 24 hours.
A prominent crypto analyst, Momentos, predicts two scenarios for the upcoming Solana price. The analyst noted that the SOL price might become bearish if it fails to hold its pivot area at $26-$29, slumping the token to $22.3. If the Solana price manages to hold its position above the pivot area, it may surge to $35.
On the other hand, MATIC price has been trading around its 38.2% Fibonacci level, which may become a strong support if the price dips. Currently, the altcoin is trading at $0.97, with a 1.5% drop in the last 24 hours. Momentos also predicted that if MATIC fails to hold its 38.2% Fibonacci level, it may plunge to its 23.6% Fibonacci level at $0.85. However, if the altcoin manages to hold its position, it will then surge to its next resistance level at $1.2.
It is evident that the bearish market trend has caused a potential drop for both Solana and MATIC. Despite the ongoing market sentiments, investors should always remember to practice risk management and diversify their portfolios to minimize their losses.