Solana is under $10! Should you buy a pullback or flee the market in 2023?

Solana is less than $10

Solana under $10: The Solana price is declining due to Fed money market effects

Solana is less than $10: Solana’s price has declined not only in the past 30 days but also in the past 6 months. the last Solana ATH ($258.93) is set for the first week of November 2021. Unfortunately for Solana’s backers and developers, it’s not clear where the project is headed as the network’s core foundation. Cryptocurrency It lost a whopping 96% of its ATH, rendering the asset virtually worthless and bringing losses to investors that they will not be able to recover. At the time of this writing, Solana price It was $9.91 and given the current situation the price is expected to drop below $5.

According to cryptoanalysts, there are 3 reasons that caused this to happen Solana’s price is collapsing. The first reason is the collapse of the cryptocurrency market over the past six months. Solana was among the big cryptocurrencies that succumbed to the crashing market. The second reason for Solana’s price drop is the money market effects of the Fed, which sent shock waves through the entire monetary ecosystem. The third reason for Solana’s price drop is tough competition from new and promising crypto projects.

Technical Analysis

Given the lack of events around the project itself, it’s hard to justify the current price performance with any news in the space about Solana. We are left with only technical analysis in the case of Solana.

Obviously, the asset is moving in a long-term downtrend, while breaking every possible support level. Recently, SOL has entered a short-term uptrend, which is more of a correction to the downtrend than an attempt to reverse. But even with the short-term bullish move, the bulls may be able to push the asset further higher. Unfortunately, this was not the case for Solana.

The recent spike in trading volume was also not a bullish case for Solana, as it was likely part of the realization of the previously mentioned millions of SOL being withdrawn from staking contracts.

Solana (SOL) Market Cap Declines After FTX Crash

What was once known as the “Ethereum Killer” has shrunk to $4 billion. Solana (SOL) market cap has fallen below Litecoin (LTC), Shiba Inu (SHIB), and Tron (TRX) after losing 60% of their value last week.

Solana (SOL) took the FTX meltdown worse than most of its peers due to its direct financial ties to Sam Bankman-Fried Enterprises.

The decentralized platform is invested in FTX and Alameda Research, two companies owned by Bankman-Fried, which makes the situation even worse.

FTX filed for Chapter 11 bankruptcy last week and pulled all 130 companies under their watch, including Alameda.

So, is this the right time to buy Solana?

Solana (SOL) is an open source blockchain project designed to support the development of decentralized applications (dApps). The highly functional protocol combines Proof-of-History (PoH) and Proof-of-Stake (PoS) consensus to achieve high scalability, and improve the number of transactions per second. This feature makes Solana one of the best blockchains that have made significant progress towards solving the blockchain trilemma problem. It also drew people’s interest in the blockchain project, improving its adoption rate. Solana boasts the fastest transaction processing time, a feature that many of its competitors have made unsuccessful attempts to overcome.

The dApp and DeFi development platform has a native token, SOL, which is used to pay for transactions on the protocol. Solana’s token was at its lowest market price in 2020, selling at a market price of $0.5. However, it had a price rally in its latest bull run, which caught the attention of many cryptocurrency investors. Solana (SOL) climbed from an all-time low to a high of $260.6. Cryptocurrency investors who benefited from the price increase are now 10 times richer. Analysts do not underestimate the tendency of crypto assets to experience another massive pump in the coming year as it aims to recover from the 95% price drop. You must keep it on your purchase list.

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