The Solana price has not been left behind in the ongoing cryptocurrency sell-off. SOL fell more than 78% between January and September 2022, bringing its market cap to approximately $11.6 billion. It is also one of the worst performing large-cap cryptocurrencies during the year.
Solana faces a tough task
Solana is one of the top Ethereum killers in the blockchain industry. It is a smart contract platform known for its use of the Proof of History (PoH) consensus framework. According to the developers, Solana has better features than Ethereum. For example, it has super-fast speeds and extremely low gas prices.
As a result, Solana is a leading player in some of the largest industries in the blockchain industry, such as Decentralized Finance (DeFi) and non-fungible tokens (NFT). Some of the top applications created in Solana include StepN, Solend, Audius, and Marinade Finance.
Solana is also widely used in the NFT industry. For example, it was used to build Magic Eden, one of the largest NFT marketplaces in the world.
eToro is one of the world’s leading multi-asset trading platforms and offers some of the lowest commissions and fees in the industry. Its social copy trading features make it a great choice for those getting started.
Buy SOL today with eToro
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, with over 600. Binance is also known for its low trading fees and a multitude of trading options that its users can take advantage of such as; peer-to-peer trading, margin trading and spot trading.
Buy SOL with Binance today
Solana, like other blockchain networks, has faced numerous challenges in recent months. First, activity on the major platforms has declined. The total value locked in DeFi has crashed from over $10 billion to just over $1.3 billion. Similarly, NFT activity has also declined.
Another major challenge is that Solana is widely known for its breakdowns. In 2022 alone, the network has had several severe outages that have affected the entire ecosystem.
Still, there are several catalysts for the Solana price. First, the network has been used to build some of the most popular web3 networks, such as Audius, StepN, and Brave Browser. Second, the developers have made progress in fixing the regular glitches. Furthermore, it has a strong market share in key industries, meaning the price is likely to recover in the future.
Solana price forecast
The daily chart shows that the SOL price has been in a strong downward trend for the past few months. As a result, the coin has moved below all moving averages. A closer look reveals that it has found a strong support around $30. This support appears to be a form of a double bottom pattern whose neckline is at $48.46.
Therefore, Solana’s outlook is neutral at this stage. A drop below the $30.42 support indicates that bears have had the upper hand. As a result, the coin drops to the next key support at $25. On the other hand, due to the double bottom pattern, a rebound to $50 cannot be ruled out.