The price of Solana hasn’t lagged behind in the ongoing cryptocurrency sell-off. SOL declined more than 78% between January and September 2022, bringing its market cap to about $11.6 billion. It is one of the worst performing large-cap cryptocurrencies during the year.
Solana faces a difficult task
Solana is one of the top Ethereum-killers in the blockchain industry. It is a smart contract platform known for its use of Proof of History (PoH) consensus framework. According to its developers, Solana has better features than Ethereum. For example, it has super-fast speeds and extremely low gas charges.
As a result, Solana is a leading player in some of the biggest in the blockchain industry, such as decentralized finance (DeFi) and non-fungible tokens (NFTs). Some of the top applications made in Solana are StepN, Soland, Audacious, and Marinade Finance.
Solana has also been widely used in the NFT industry. For example, it was used to create Magic Eden, one of the largest NFT marketplaces in the world.
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Solana, like other blockchain networks, has faced many challenges in the past few months. For one, activity across its major platforms has plummeted. Its total value locked in DeFi has dropped from $10 billion to a little over $1.3 billion. Similarly, its NFT activity has also declined.
Another significant challenge is that Solana is widely known for its outages. In 2022 alone, the network has experienced several serious disruptions, affecting its entire ecosystem.
Still, there are several catalysts for the Solana price. Firstly, its network has been used to build some of the most popular Web3 networks such as Audius, StepN, and Brave Browser. Second, developers have made progress on fixing regular outages. Furthermore, it has a strong market share in key industries, which means that its price is likely to rebound in the future.
Solana Price Prediction
The daily chart shows that the SOL price has registered a strong decline over the past few months. As a result, the coin has moved below all moving averages. A closer look shows that it has found strong support near $30. This support looks like a double-bottom pattern with a neckline of $48.46.
Therefore, at this stage, Solana’s outlook is neutral. A break below the $30.42 support is a sign that the bears have prevailed. As a result, the coin will fall to the next major support at $25. On the other hand, a bounce back to $50 cannot be ruled out due to the double-bottom pattern.