The current situation in the Solana market is under discussion. The price has been in a state of consolidation for the past seven months, raising questions about a possible decrease. This article explores whether Solana can fall to 50 dollars and the factors influencing it.
Current Solana Price Movements
At the time of writing, the SOL price is around 160 dollars, reflecting a daily increase of 2.84%. A potential drop to 50 dollars would indicate a decline of approximately 70%. This might reduce its market capitalization to 23.6 billion dollars, possibly removing it from the top 10 cryptocurrencies.
Possible Risks of Price Decline
According to DeFiLlama, the total value locked (TVL) of SOL has grown by 56% over the past 11 weeks to 5.95 billion dollars, showcasing rising investor confidence and capital inflows. The number of addresses on the Solana blockchain increased from 3 million to 4.89 million within two weeks, reflecting heightened user interest. If the level of 188 dollars is exceeded, the target could rise to 210 dollars, but a sharp BTC decline might cause negative impacts and new lows.
Factors Supporting Solana
The Solana network continues to compete with Ethereum due to higher transaction volumes and lower costs. After the FTX collapse, some believe that SOL is undervalued and well-positioned for recovery. The current price consolidation resembles a 'bullish flag' formation, suggesting a potential upward trend.
Despite concerns about the potential drop to 50 dollars, Solana shows strengthening positions due to increasing TVL and user activity. A robust ecosystem continues to provide opportunities for further growth.