Solana moves to a more local floor as property recovery doesn’t seem to be around the corner
The asset price failed to break the sharp downtrend that saw the price drop 68% since November 2021, despite the Solana Network continuing to grow. So far, the cryptocurrency has hit its lowest price point since August, according to TradingView.
Despite the flash crash below $80, the coin has successfully returned to $85 several times, but due to the existence of strong selling pressure on the asset, the bulls have failed to push the “Ethereum killer” through the resistance of the downtrend.
According to the moving averages on the chart, Solana is still moving in a sharp downtrend that has slowed down with average volatility at around 10%. Both the 50-day and 200-day moving averages are trending under the asset’s price performance, which remains negative.
Despite Solana Pay’s continued commitment to growth and GitHub, the network still cannot attract investors who will drive the asset’s price up. Tokens like LUNA have been trading with high gains over the past month, regardless of the current market conditions.
Why does Solana show one of the worst performances ever?
There is no specific reason for Solana’s performance on the market as the project does not have any fundamental issues or regulatory issues in either country, so the primary source of pressure on the project is linked to the speculative nature of the asset.
Solana Network has handled most of the NFT-related projects in the industry, which unfortunately, ended up being scams or exploits. Once users moved their SOL to the wallet of scammers and were disappointed because of the ROI of their investment, they left the network and never bought a new coin back.
Since most of the NFT projects lead to the sale of all SOL holdings in the market, there was no other option but to see a significant drop in the price of the asset.