Solana Faces Challenges Amid Crypto Market Downturn
Solana’s price has been under pressure for the past two months. The cryptocurrency has seen its price drop from $295.52 to $112, losing $71 billion in market value.
The decline in Solana’s price is partly due to the ongoing crypto market crash. The total market cap of the crypto industry has fallen to $2.8 trillion. Additionally, concerns about Solana’s ecosystem have fueled the price drop.Many Solana-based meme coins have turned out to be scams, leading to a decrease in their market cap from $25 billion to $7.7 billion.A large token unlock earlier this month, linked to FTX distributions, has also added pressure.This event introduced more tokens into circulation, potentially diluting the value.Solana has also lost market share in the decentralized exchange (DEX) industry to Ethereum. in the last 30 days, Solana’s DEX volume was $76.95 billion, lower than Ethereum’s $84 billion.
however, there are signs of a potential recovery. The accumulation and distribution indicator shows investors are accumulating SOL during the downturn.solana is forming a cup-and-handle pattern, a bullish sign. If Solana holds above $100, it coudl rally to $505, a 270% increase. This pattern could take months or years to complete.
