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Solana Below $10: The Solana price has been falling not just for the past 30 days but also for the last 6 months. The last Solana ATH ($258.93) was set in the first week of Nov 2021. Unfortunately for Solana supporters and developers, it is not clear where the project is heading as the network's underlying cryptocurrency lost an enormous 96% from the ATH, practically making the assets worthless and bringing losses to investors that they will not be able to recover. At the time of writing, Solana's price was $9.91 and looking at the current state it is expected that the price will fall below $5.
According to crypto analysts, there are 3 reasons that have caused the Solana price to crash. The first reason is the crashing crypto market for the last six months. Solana has been among the large cryptocurrencies that have succumbed to the crashing market. The second reason why the Solana price is dropping is the FED influences in the money market, which has caused shockwaves in the entire monetary ecosystem. The third reason why the Solana price is plummeting is the tough competition from new and more promising crypto projects.
Considering the lack of happenings around the project itself, it is difficult to justify the existing price performance with any news in the space about Solana. We are left with nothing but technical analysis in the case of Solana.
Obviously, the asset is moving in a prolonged downtrend, while breaking every support level possible. Recently, SOL has entered a short-term uptrend, which has been more of a correction of a downtrend rather than an attempt to reverse. But even with short-term upward movement, bulls might be able to push assets further up. Unfortunately, this was not the case for Solana.
The most recent spike in trading volume also was not a bullish case for Solana, as it was most likely part of a realization of the previously mentioned millions of SOL that have been withdrawn from staking contracts.
What was once popularly known as the "Ethereum Killer" shrinks to a $4 billion value. Solana (SOL)'s market capitalization dropped below Litecoin (LTC), Shiba Inu (SHIB), and Tron (TRX) after losing 60% of its value last week.
Solana (SOL) received the FTX crash worse than most of its counterparts due to its direct financial ties with Sam Bankman-Fried enterprises.
The decentralized platform is invested in FTX and Alameda Research, both companies owned by Bankman-Fried, making the situation worse.
FTX filed for a Chapter 11 bankruptcy last week and dragged all 130 companies under its watch down the hole, including Alameda.
Solana (SOL) is an open-source blockchain project designed to support the development of decentralized applications (dApps). The highly functional protocol combines proof-of-history (PoH) and proof-of-stake (PoS) consensus to achieve high scalability, improving the number of transactions per second. This feature makes Solana one of the foremost Blockchain that made notable progress towards solving the problem of Blockchain trilemma. It also drew individuals' interests to the blockchain project, improving its adoption rate. Solana boasts the fastest transaction processing time, a feature that many of its competitors have made unsuccessful attempts to beat.
The dApp developing and DeFi platform has a native token, SOL, which is used to pay for transactions on the protocol. Solana token was at its lowest market price in 2020, selling at a $0.5 market price. However, it had a price pump in the last bull run, which attracted the attention of many crypto investors. Solana (SOL) rallied from its all-time low to a peak price of $260.6. Crypto investors that benefited from the price increase are 10× richer now. Analysts are not downplaying the propensity of the crypto asset to experience another huge pump in the coming year as it aims to recover from its 95% price decline. You should keep it on your must buy list.
