The November crypto crash impacted the Solana price in a way that, a month after the FTX-triggered crypto collapse, it is yet to recover. Today, it continues to trade at more than two-thirds of the price it was trading before the crash happened. Recent price action also shows the crypto continuing with the bearish trend, with today’s trading session extending the bearish trend of the past two days.
Solana (SOL) is a blockchain protocol that uses proof-of-stake (POS) as its consensus mechanism. It was created by Anatoly Yakovenko and is primarily used for smart contracts.
Fundamentally, the Solana network has several features that make it attractive for use in the crypto industry. It has high transaction throughput, low transaction fees, and a fast block time, making it a viable alternative to networks like Ethereum. In addition, it is backed by a strong team and has a strong community of developers and users.
However, the recent bear market in the crypto industry has had a negative impact on the Solana network. The decrease in activity and interest in the DeFi and NFT sectors has led to a decrease in demand for Solana’s native token, SOL. This has resulted in a significant decline in the SOL price, breaking down from the long-term $29 support level and reaching a low of $10.94 in November 2022.
Currently, there are no bullish reversal signs in place, indicating that the SOL price is likely to continue falling towards the next support area at $11. This would represent a drop of nearly 15% from the current price.
Overall, while Solana has strong fundamental attributes, the current market conditions have had a negative impact on the SOL price. A recovery in the DeFi and NFT sectors could potentially lead to an increase in demand for SOL and a reversal of the current bearish trend.
As shown in the above fundamental analysis, Solana is likely to continue struggling in the markets for the next few trading sessions. On the fundamental side of things, we are looking at the possibility of Solana dropping and hitting the $11 support level.
Therefore, based on both the fundamental and technical analysis of Solana, there is a high likelihood that we might see the crypto possibly trading below the $10 price level in the next few trading sessions. However, Solana hitting the $20 price level wlll invalidate my bearish analysis.