Solana price has not been left behind in the ongoing cryptocurrency sell-off. SOL dropped by over 78% between January and September 2022, bringing its market cap to about $11.6 billion. It is also one of the worst-performing large-cap cryptocurrencies during the year.
Solana faces an uphill task
Solana is one of the top Ethereum-killers in the blockchain industry. It is a smart contract platform that is known for its use of the 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 fees.
As a result, Solana is a leading player in some of the biggest industries in the blockchain industry like Decentralized Finance (DeFi) and non-fungible tokens (NFT). Some of the top applications that have been created in Solana are StepN, Solend, Audius, and Marinade Finance.Â
Solana has also been used widely in the NFT industry. For example, it was used to build Magic Eden, one of the biggest NFT marketplaces in the world.
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Solana, like other blockchain networks has faced numerous challenges in the past few months. For one, activity in its key platforms has dwindled. Its total value locked in DeFi has crashed from over $10 billion to slightly above $1.3 billion. Similarly, its NFT activity has also dropped.
Another key challenge is that Solana is widely known for its outages. In 2022 alone, the network has had several severe outages that impacted its entire ecosystem.Â
Still, there are several catalysts for Solana price. First, its network has been used to build some of the most popular web3 networks around like Audius, StepN, and Brave Browser. Second, the developers have made progress on fixing the regular outages. Further, it has a strong market share in key industries, meaning that its price will likely rebound in the future.
Solana price prediction
The daily chart shows that SOL price has been in a strong downward trend in the past few months. As a result, the coin has moved below all moving averages. A closer look shows that it has found a strong support at around $30. This support seems like a form of a double-bottom pattern whose neckline is at $48.46.
Therefore, at this stage, the outlook oF Solana is neutral. A drop below the support at $30.42 will signal that bears have prevailed. As a result, the coin will drop to the next key support at $25. On the other hand, because of the double-bottom pattern, a rebound to $50 cannot be ruled out.