Solana (SOL) Sinks as Crypto Market Prices Plummet

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Altcoins
Solana (SOL) Sinks as Crypto Market Prices Plummet

Solana prices have traced a downward trend since April 2, showing signs of easing as it approaches the range low. A bounce around the present level is probable in the next few days, followed by a recovery above the range’s midpoint.

Solana has Been Going Down

Solana is currently trading at $86.29, 11.07% down from a week ago and 2.29% down yesterday. Notably, the Solana network features a robust NFT marketplace, Solanart, which has attracted a wide range of investors and creators. As adoption grows, the price of SOL will continue to increase.

Solana prices range from $80.76 to $121.52 after surging almost 50% between January 24 and February 7. SOL has been trading inside these hurdles since, with only a few unsuccessful breakouts. The range bottom for Solana pricing was first brushed in February, followed by an 83 percent run-up that recorded a swing high of $143.64.

On the other hand, buyers were unable to maintain their momentum, resulting in the final collapse of this upswing. SOL has dropped nearly 43 percent of its market value as of April 30 and is now trading around the $88.65 mark.

Investors should anticipate the Solana price to initiate a run-up to retest the 50% retracement level at $101.70 soon. The nature of range markets and the overall bullishness of the Bitcoin and crypto ecosystem account for this bullishness. 

If it clears this obstacle, SOL might tag the lower boundary of the $108.26 to $113.72 supply zone. This rise would represent a 23 percent increase in total, and the upside would probably be limited for the time being.

On the other hand, a rapid surge in selling pressure, resulting in a daily candlestick close below $80.76, will result in a lower bottom and invalidate the bullish thesis. SOL might fall by 28% to the $57.63 support level in such a circumstance.

Solana and Ethereum Under ‘Stress’ 

The Solana blockchain experienced a seven-hour outage earlier this month due to the sudden increase in the number of NFTs minted on various blockchains, including Ethereum. This move resulted in congestion in the transaction network.

The Solana network’s mainnet crashed after it was out of consensus. The issue was caused by the sudden increase in the number of NFTs being minted on the platform. On the Ethereum network, the rising number of transactions caused the gas fees to increase.

Proponents of the Solana network argue that it would be impossible for people to use the platform if it doesn’t have consistent availability. The network’s unique feature is its high transaction speed. Analysts noted that the Solana network did not have a steady flow of transactions when the NFTs stopped despite the network’s unique features.

According to some analysts, the price of Solana could fall further due to the increasing selling pressure on the platform. 

The Crypto Market on a Downward Movement

The recent decline in the price of Bitcoin has created a new phase of uncertainty in the cryptocurrency market. Aside from the Federal Reserve’s meeting, other factors such as releasing corporate earnings reports and geopolitical events are also expected to affect the market.

The market’s volatility led to Bitcoin’s price falling to around $39,000 before it recovered to about $38,000 this week. Currently, Bitcoin is trading at the $38K level, 1.25% lower than yesterday. Other cryptocurrencies such as Dogecoin and Shiba Inu also experienced losses. On the other hand, Ethereum managed to gain ground, rising by around 0.2%.

The recent decline in the price of Bitcoin has created a new phase of uncertainty in the cryptocurrency market. As a result, many investors are still uncertain about the market’s future.

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