Solana, JasmyCoin, and other altcoins continued their strong sell-off this week as the crypto fear and greed index fell.
Solana and Jasmy are in a bear market
JasmyCoin (JASMY) dropped to a low of $0.01717, down by over 58% from its highest level this year, bringing its market cap to $908 million.
Solana (SOL), the fifth biggest cryptocurrency, retreated to the support of $120, much lower than the year-to-date high of $209.
This sell-off has mirrored the performance of Bitcoin, which has dropped from over $73,800 in March to $54,000.
Solana’s sell-off has happened as its ecosystem goes through some challenges. Pump.fun, its meme coin generator, is seeing stiff competition from the recently launched SunPump. Data shows that SunPump has collected over $25 million in fees a few weeks after launch while tokens in its ecosystem are valued at over $428 million.
Pump.fun tokens have over $487 million in market cap while its ecosystem has generated over $140 million in fees, nine months after launch. This means that Tron is catching up with it.
Tron has also passed Solana in terms of total value locked in the DeFi industry. It has over $7.69 billion in assets, higher than Solana’s $4.60 billion. Solana has over $3.6 billion in stablecoins while Tron has $60 billion. Most of Solana’s stablecoins are USD Coin (USDC).
Therefore, there are signs that Solana is losing momentum. Technically, the token has formed a triple-top chart pattern, a popular bearish sign.
Most notably, it is about to form a death cross chart pattern as the 200-day and 50-day moving averages are about to cross each other.
The spread between the two moving averages has narrowed from 13% in August to just 3.70%. Such a pattern will likely lead to more downside, with the initial target being last month’s low of $110.
Jasmy is also about to form a death cross
Jasmy, a Japanese cryptocurrency, retreated even after Mitsubishi UFJ, Mizuho, and SMBC announced their entry into the crypto industry by testing stablecoin transfers.
In most periods, Jasmy rises when there is a major crypto-related news from Japan.
Like Solana, the spread between the 200-day and 50-day moving averages has narrowed, rising the formation of a death cross.
Jasmy formed a golden cross — the opposite of a death cross — in November 2023, leading to a 788% rally. Therefore, if this death cross happens, there is a risk that the token will continue falling in the coming months.
A key risk for Solana, Jasmy, and other altcoins is that the industry may be moving into a crypto winter that can be prolonged. The last winter lasted between November 2021 to January 2023.
