Solana Price Falls Below $170; What’s Next?
After an impressive price rally between May 15 and 22, the Solana had seen a massive drop and has declined for days now. However, this is not all, as the altcoin has both the bulls and bears active in the chart, and the charts can shift in any direction in the next few hours, indicating a crucial time for Solana price.
Earlier, Solana surged to the month high of $187.39, aiming to target the March high, but the instant drop has pushed Solana back to the beginning.
In this blog, let us discuss why Solana’s price is dropping constantly and whether it will surge or drop next.
Why Is Solana Price Declining?
Solana charts started to indicate the possibility of a decline after its biggest competitors’ ETF approval rumors hit the market. The Bloomberg analysts earlier claimed the chances of Ethereum ETF approval have increased to 75% because of few hints from the SEC, and the result also came following that. This pushed the Solana price even further to as low as $163.38. Regardless, the price has recovered from that low and is currently trading at $169.70 with a market cap of $76,264,513,063. However, the number of transactions has declined, as the trading volume is down by 56%.
Following the Ethereum ETF approval, Solana PoS validators followed an un-staking spree, leading to the unstaking of 3.5 million Solana tokens between May 20 and 24. Those unstaked SOLs are now worth more than $594 Billion and the current staked SOLs are limited to 365.3 million.
As per the record, such a high reduction in staking often leads to temporary instability for the Proof Of Stake networks.
What’s Coming Next For Solana?
Solana is under a correction zone, recovering from the overbuying condition earlier this week. With the Ethereum ETF, Solana entered a selling pressure, causing this price drop. However, the Solana price has started to lift from yesterday as the token has gained a 2.5% hike, and much more might come as the market settles the hype around Ethereum ETF.
Moreover, crypto leaders and companies have already started discussing the Solana ETF, as this is the biggest cryptocurrency after Bitcoin and Ethereum per the demand in the market. For now, Ethereum’s dominance is impacting the Solana price, and investors are backing their steps to retrieve the maximum profit they can in fear of further drop.
Lastly, analysts believe Solana can still retract its prices to achieve the target of $216 in the upcoming days. A few technical indicators, like the Moving Average Convergence Divergence (MACD), favor a surge for now.
Read More Trader Made $42M With 3 Cryptocurrencies; Checkout His Portfolio
The post Solana Price Falls Below $170; What’s Next? appeared first on CoinGape.