Solana below $10: Solana price drops due to FED money market influences
Solana below $10: The price of Solana has gone down not only in the last 30 days but also in the last 6 months. The last Solana ATH ($258.93) was fixed during the first week of November 2021. Unfortunately for Solana supporters and developers, it’s unclear exactly where the project is headed as the underlying of the network. cryptocurrency lost a whopping 96% of ATH, rendering assets virtually worthless and causing losses for investors that they will not be able to recoup. At the time of writing, Solana’s price was $9.91 and looking at the current state, the price is expected to fall below $5.
According to crypto analysts, there are 3 reasons that caused the Solana price crashes. The first reason is the collapse of the crypto market over the past six months. Solana is among the major cryptocurrencies that succumbed to the market crash. The second reason why Solana’s price is falling is the FED’s influence on the money market, which has sent shockwaves through the entire monetary system. The third reason why the price of Solana is falling is fierce competition from new, more promising crypto projects.
Technical analysis
Given the lack of events around the project itself, it’s hard to justify the existing price performance with news in the space regarding Solana. We are left with only technical analysis in the case of Solana.
Obviously, the asset is moving in an extended downtrend, while breaking all possible support levels. Recently, SOL entered a short-term uptrend, which was more of a correction of a downtrend than an attempt to reverse it. But even with a short-term upside move, the bulls might be able to push the assets higher. Unfortunately, that was not the case for Solana.
The most recent spike in trading volume was also not a bullish case for Solana, as it was most likely part of a realization of the previously mentioned millions of SOLs being pulled from staking contracts.
Solana (SOL) Market Value Drops After FTX Crash
What was once known as the “Ethereum Killer” is shrinking to a value of $4 billion. The market capitalization of Solana (SOL) fell below Litecoin (LTC), Shiba Inu (SHIB) and Tron (TRX) after losing 60% of its value last week.
Solana (SOL) suffered the FTX crash worse than most of its counterparts due to its direct financial ties to the Sam Bankman-Fried businesses.
The decentralized platform is invested in FTX and Alameda Research, two companies owned by Bankman-Fried, making the situation worse.
FTX filed for Chapter 11 bankruptcy last week and dragged all 130 companies under its watch into the hole, including Alameda.
So is it the right time to buy Solana?
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, thus improving the number of transactions per second. This feature makes Solana one of the leading blockchains that have made notable progress in solving the blockchain trilemma problem. It has also attracted the interest of individuals towards the blockchain project, improving its adoption rate. Solana has the fastest transaction processing time, a feature that many of its competitors have tried unsuccessfully to beat.
The dApp and DeFi development platform has a native token, SOL, which is used to pay for transactions on the protocol. The Solana token was at its lowest market price in 2020, selling at a market price of $0.5. However, it had a price pump in the last bull run, which caught the attention of many crypto investors. Solana (SOL) fell from its all-time low to an all-time high of $260.6. Crypto investors who benefited from the price increase are now 10 times richer. Analysts aren’t downplaying the crypto asset’s propensity for another huge pump over the coming year as it aims to recover from its 95% price drop. You should keep it on your must-buy list.
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