Even in the face of good news, such as the partnership with Google Cloud, for example, Solana is not experiencing good days. The cryptocurrency price has dropped more than 6.5% in the last 24 hours and, at the time of writing, is costing BRL 164.13, according to data from CoinGecko.
And it may be that the worst is not over yet. According to analysts, the price of Solana could fall further with the arrival of a wave of new selling pressure.
Reasons for Low Solana (SOL)
This current low for Solana is actually a continuation of the decline that the cryptocurrency has seen throughout the year. So far in 2022, SOL has already retreated more than 83%. The price of the digital asset dropped from BRL 996 to the current price of just over BRL 164.
Solana price chart for the last 24 hours. Source: CoinGecko
Behind this decline is the macro market condition – which is generally down – but also a recurring problem with the Solana network: blockchain disruptions. As FXStreet analyst Ekta Maurya pointed out, Solana was hit by several disruptions throughout the year. Since the beginning of 2022, there have been more than ten outages on the SOL network. This affected the performance of the Solana blockchain.
The problem is so common and critical that Anatoly Yakovenko, co-founder of Solana, had to address it at the annual Breakpoint 2022 conference, held on November 5th in Lisbon, Portugal. At the time, he admitted that the network had struggled throughout 2022, but assured users that new updates are in the works to address these issues.
Solana’s status report records all partial and total outages. The most notable episode took place in the second week of January 2022. The most recent outage took place on October 1st and lasted more than six hours.
Will Solana price go up?
As for SOL’s price projections, analyst Crispus Nyaga is not optimistic. He assessed the Solana price chart and observed a strong downtrend. That’s because, according to him, the price of Solana fell below two main price levels: US$ 35.45 (R$ 181) and US$ 34 (R$ 174).
Nyaga noted that the Solana price dropped below the 50-day simple moving average, at the same time that the Relative Strength Index dropped below neutral. These indicators imply the continuation of Solana’s downward trend.
Finally, the analyst highlighted that profit-taking by weekend buyers and the general decline in the cryptocurrency market contributed to the bearish sentiment among Solana holders.
