Recently, Solana has faced a significant price decline, raising concerns among market participants. In this article, we explore the main reasons for this trend and potential future scenarios.
Investor Financial Concerns
Solana's price has dropped to $134.69 in the past month. A slight 1.5% recovery in the past 24 hours brought the price up to $142.39, but overall market sentiment remains negative. SOL trading volume has decreased by 18% to $13 billion, indicating prolonged investor distrust.
Causes of Solana's Price Drop
The decline in Solana's price is attributed to various factors including market volatility and the LIBRA coin scam. The rising popularity of the Pump.Fun platform has led to an increase in pump-and-dump schemes involving memecoins on the Solana network, adversely affecting its ecosystem. Additionally, declines in transaction volume, active addresses, and trust in the network are noted.
Forecasts for SOL Price
Experts have differing views on Solana's future. Analysts believe that maintaining the support level between $120-$140 is crucial. Losing this level could lead to a drop to $80, while sustaining it might restore the price to $170. Events will reflect market sentiment and the impact of the upcoming unlock of 11.2 million SOL.
Solana's price drop creates uncertainty for investors. While short-term forecasts vary, maintaining key levels will play a decisive role in the further development of the situation.
