Solana (SOL) Sinks To 45-Day Low Amidst Market Downturn, Here’s Why
Amid a wider market decline, the Solana blockchain, one of the leading blockchain platforms known for its fast and inexpensive transactions, has fallen to a 45-day trading low. This has triggered quite a frenzy within the crypto community, with several proponents uncertain of the asset’s next short-term trajectory.
Solana Underperforms Major Cryptocurrency Assets
Trading platform and crypto analyst TOBTC shared the negative development on the X (formerly Twitter) platform. According to recent trading data cited by the expert, the blockchain has drastically declined, which is indicative of a major drop in investor trust in the cryptocurrency industry as a whole.
The platform noted that Solana fell to a 45-day low, with an additional 24% reduction since June 7, underperforming the larger cryptocurrency market. The Data shared by the platform shows that the Solana network has fallen significantly behind major networks like Ethereum, Arbitrum, BNB Chain, Polygon, and Optimism, among others.
This decline occurs when macroeconomic uncertainties and traders’ cautious attitudes are causing the digital asset market to experience greater volatility and selling pressure. For SOL, which has suffered a decline in price from its previous highs, the 45-day low represents a turning point that has raised concerns about the crypto asset’s near-term prospects.
TOBTC attributes this decline to a combination of broader market weakness and particular difficulties the network is experiencing. These include reduced on-chain activity, lack of demand for leveraged positions, and competition from other smart contract-focused blockchains.
Without heightened demand or institutional backing, the platform claims SOL’s valuation might persist in decline, possibly surpassing the pivotal $130 support level or less.
SOL‘s inability to sustain an upward trajectory and overcome significant resistance levels might also be attributed to the drop. SOL has lost its backing, falling from the $161 price to around $138 in the past week. However, the crypto asset has attracted positive price sentiment today, demonstrating strength for more gains.
SOL Poised For Substantial Rise In Autumn
Despite this negative development seen with Solana, a well-known cryptocurrency expert and Chief Executive Officer (CEO) of Real Vision, Raoul Pal is still bullish about a potentially massive rally for SOL in the short term.
On Tuesday, Pal offered an exciting prediction for the digital asset, citing the current price as a good entry zone for investors interested in getting into the market. “If you wanted a cheeky top-up of your SOL position, this would likely be a good entry zone,” he stated.
Pal, in his bullish forecast, compared the potential growth of SOL to bananas that are now beginning to mature. As a result, he is confident that the digital asset during the upcoming autumn season should be magnificent.