In recent days, the price of Solana (SOL) has experienced significant drops due to several economic factors and the behavior of large investors. This article examines the reasons behind the current state and the cryptocurrency's prospects.
Reasons for Solana's Decline
Several major factors contributed to Solana's price drop. One significant factor was U.S. President Donald Trump's decision to impose new tariffs. This pressure caused investors to move away from risky assets such as cryptocurrency, contributing to SOL's price downturn. Over the past week, the price has dropped by 15.71%, showing a significant decline from $136.06 to $112.83.
Reactions from Major Investors
Data analysis indicates that large investors, known as 'whales', have begun selling off their holdings. For instance, one investor sold 258,646 SOL worth over $30.3 million. This created additional market pressure, exacerbating the price drop situation.
Future of Solana and Price Predictions
Despite the current decline, there are encouraging news. The PayPal platform now supports Solana, allowing users to buy and sell the token through their platform. This signals growing interest in the cryptocurrency from major financial institutions. However, analysts warn that if SOL's price falls below $110, it may reach $80.
Solana's current decline is due to a combination of economic factors and reactions from large investors. However, with new partnerships such as working with PayPal, the token holds potential for recovery in the future.
