SOL is the native token of the Solana blockchain project. it uses -proof-of-stake (PoS) consensus mechanism. Solana Protocol primarily deals with smart contracts.
The Solana ecosystem was particularly hard hit by the FTX fallout because it was heavily intertwined With both FTX and Sam Bankman-Fried. Decentralized Finance (DeFi) sector was hit particularly hard. Currently, there is only $255 million total-value-locked (TVL), a decrease of over 90% from the all-time high TVL of $10 billion.
However, there is still some positive Solana news. Anatoly Yakovenko, the founder of Solana, said that he still has 30 months of runway left, which bodes well for the potential for recovery. Additionally, it is noteworthy that Solana has a very strong developer community,
Solana Price goes into free fall
solana worth It has fallen since November 2021, when it reached an all-time high of $259.90. in the beginning, sol price Bounced to the $29 horizontal support area. However, it broke down in November 2022 and reached a new yearly low of $10.94. The breakdown was particularly notable as the $29 support area previously served as support since July 2021.
There are no bullish reversal signals. it can be seen in weekly RSI, which is declining (red icon) and has not generated any bullish divergence. Furthermore, the indicator has not yet entered the oversold territory. This supports the possibility of continued reduction.
If the downward momentum continues, the next support area for SOL token will be at $4, a level not reached since January 2021. Measured against the current price, this would equate to a decline of 67%.
while it is most likely solana price Forecast, a retest of the $29 horizontal zone would invalidate the bearish assumption. Since this field has yet to be tested, this seems unlikely.
price loses short term support
The daily chart replicates the findings of the weekly. A break above the $13.50 horizontal support area immediately became the focus of attention. This area previously initiated two bounces (green icons) on 28 November and 13 December.
Solana price broke above the line on December 16 amid a large bearish candlestick. It recovered slightly in the next 24 hours but failed to initiate an upward movement.
It is interesting to note that the daily RSI has formed a bullish divergence (green line). This is the only bullish signal amid heavy bearish price action. As a result, a break of this bullish divergence trendline could accelerate the downside momentum.
To conclude, most signals point to bearish for Solana price trend in both long and short term. Hence, the downward momentum is most likely to continue.
Retesting the $13.50 area will turn the short-term trend bullish, while retesting the $29 level will turn the long-term trend bullish.
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