SOL Suddenly Dropped by 29% in August

2022-09-01, 14:45

[TL; DR]

Solana price today is $32.09 with a $1,336,326,601 24-hour trading volume.

The past few months have been gloomy for cryptocurrencies as the entire market sank by nearly 34% (estimated at $1.28 trillion).

One of the projects most severely affected by this is Solana (SOL), which has experienced a drop of 29%.

The bearish market has succeeded in bringing the price of Solana down to the $35 range. If the selling pressure persists, a further loss may also be anticipated.

According to Price Predictions, the average price of SOL cryptocurrency may increase to $61.46- in 2022, $88.44- in 2023, and $179.57- in 2025.

A loss of 29 percent and a trading volume drop of 26.70%, which has been recorded recently, leave a hint at the severity of the case. Since August 14, Solana has been held by the bears, yet today has made a further shortfall. More damage is expected if the bears continue their assault.

Market condition of Solana: $SOL Drops by 29%

Data from the past few weeks shows that SOL is down by a massive 29% and currently struggles to stay above support at around $35. At the start of August, SOL set a new 2-month high which made it climb as high as $48. But unfortunately, it encountered resistance which has resulted in its recent decline.

The Solana price analysis reveals a downward trend, with bears dominating the price charts for most of this week. After being at $46.6 on August 14, 2022, the price levels have sharply declined, and the coin's value has dropped to the $30 to $35 range.

While it appears that the developers have the situation under control for the moment, many investors are rapidly losing trust in Solana.

source: gate.io

Several events have contributed to Solana's 29% price collapse, with the weak market. Since 2021, the crypto market has been declining, and most of the coins have been affected by this. Although Solana has been plunging, the problem is widespread across the industry.

Other Factors that Played in the Price Drop of SOL?

2022 has not been a good year for Solana because even while the collective crypto market is under a bearish trend, the Solana network has been the target of most hackers, with losses worth nearly a billion dollars.

Since the blockchain fell prey to an attack on August 3, Solana's price has been struggling to recover from its downfall. This attack, which affected the Solana-based crypto wallets like Phantom and Slope, claimed 8,000 victims and looted up to $8 million from their wallets.

Competition from new and highly performing crypto projects like Bitgert is another reason the Solana price has declined. The Solana group will need to do more to outrun the Bitgert competition.

As Solana continues to show signs of weakness, such as network shutdown and as we draw close to the Ethereum Merge, market sentiment may attract continued sell-off among Solana Holders.

How High Can the SOL Coin Go in the Future?

After a challenging week for the crypto market, traders remain unsure of where the price of Solana (SOL) will go in the near future.

As of August 2, the technical SOL coin analysis from CoinCodex was bearish, stating that the currency might trade up to the target price of $46.49 by August 7 but then decline to $43.27 by August 30.

As it stands, this prediction seems to be playing out owing to Solana's cumulative decline and even going deeper.

Earlier this year, the community at CoinMarketCap made bullish predictions that the SOL token would trade at a median price of $250 by August 31, 2022. But this is not the case as it stands.

Meanwhile, even with the gloomy market gone, as some predictions have, one of the most challenging obstacles Solana still has to overcome is stiff competition from higher projects. These are the cryptocurrency projects that could outperform Solana in the market.

Solana Price Today

As of writing, Solana is now at $32.09, down -6.1 percent over the previous 24 hours, with a trading volume of $1,207,613,742.

In The End

Sell pressure on Solana is currently high, which is already an unfavorable sign. However, it does not yet determine the future of Solana.

The cryptocurrency market is incredibly unpredictable, making it challenging to predict a coin's price with accuracy over a few hours and even more challenging to establish a long-term price.

In other words, SOL, bearish today, may turn bullish the next moment. According to the forecast by Price Prediction, the average price of SOL cryptocurrency may increase to $61.46 in 2022. Even with the recent downturns, let's be hopeful that the bears' season will soon be over.

But in the meantime, Solana investors are urged to remove their cryptocurrencies from hot wallets and turn off third-party permissions on their cryptocurrency wallets.

Author: Gate.io Observer: M. Olatunji
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