Last month, Solana’s price dropped by 56 per cent, closing the markets below $15 for the first time since March 2021. The drop was a continuation of the long-term bearish trend of Solana, which has caused the crypto to drop by more than 90 per cent year-to-date.
Solana had long been seen as the project that would put an end to the dominance of Ethereum, especially in the Decentralized Finance space. The position as the Ethereum killer would get solidified during the 2021 calendar year when its price surged by more than 20,000 per cent, rising from $1.5 to price highs of over $220 by December.
For many investors, there was hope that we would see the continuation of the strong bullish trend throughout the year, and for the first few trading sessions of the year, Solana looked to be setting up for a huge move. However, the bullish trend continuation failed to materialize, setting up a yearly long-term bearish trend that has seen Solana dropping by more than 90 per cent year-to-date.
Some of the fundamental factors that have impacted the crypto and contributed to the current bearish trend have included the early-year political uncertainty due to the Russia-Ukraine war, which caused most investors to become cautious and withdraw their digital assets investments. Solana also suffered heavily in mid-May when USDT and Terra Luna collapsed. This was followed by the November FTX crash that caused the Solan price to collapse by 56 per cent for the month.
Today, the fundamental factors that have played a significant role in the current Solana price plunge are likely to continue playing a part in its future. With Solana already down by almost 5 per cent in the first two trading sessions of the month, it is likely that we might close the year with an even more aggressive bearish trend.
This post was last modified on Dec 02, 2022, 10:12 GMT 10:12