By Alicia Maher
As of this writing, SOL trades at $85.65, indicating a drop of 16% over the past 24 hours and about 40% in the last seven days. Thus, making the $100 price a resistance after being the support for many months.
Massive Price Drop
If the buying pressure isn’t intense enough, SOL might keep dropping to the $79 levels. However, a temporary correction might still happen within the next few days as SOL is currently in the oversold region as of this writing. Its price drop is unsurprising, given that the wider crypto market has been declining for nearly a month now.
At its current price, SOL is nearly 70% off its peak price of $258, which it achieved a little over two months ago. The price of the top two digital assets (BTC and ETH) has also dropped by 22% and 33% each over the past seven days.
SOL Price Key Support Level
Selling pressure has been intense in the last five days, with the RSI at 20 on the 24-hour chart. SOL’s RSI hasn’t been at that level in nearly 14 months.
The MACD also remains bearish and doesn’t show any signs of turning bullish shortly, with the histogram establishing lower lows. The bears will continue to have the upper hand in SOL price till it reaches the $75 level, at which point they might be exhausted, which would allow the bulls to take over.
Asides from a general bloodbath in the crypto market, there has also been huge network congestion on the Solana blockchain. The network’s blog revealed a slight breakdown in their system three and two days ago.
A Solana status tweet confirmed the partial outage citing network congestion as the cause. But it stated that the network’s developers are aware of the situation and are already finding a solution to the issue. One of Solana’s founders, Anatoly Yakovenko, thanked those who have contributed to the resolution of the problem via tweet.
A Host Of Network Issues
The Solana network has been down a couple of times in the last three months. Four months ago, the SOL price dropped by 18% after the network broke down for nearly 18 hours. Yakovenko attributed the downtime to the network being swamped by several bots.
Despite its recent troubles, Solana made an appreciable impression on the crypto community last year. While it started last year as a relatively unknown platform and its native token (the SOL) at a low price of $1.53, SOL had gained nearly 11,500% by the end of last year.
Sino global capital boss, Matthew Graham, revealed during a recent interview that it is surprising that Solana can now be regarded as a genuine Ethereum rival despite being an unknown entity to the general crypto ecosystem at the start of last year.
Many analysts and investors have concluded that Ethereum’s network effect and developer reach has made it near impossible for any network to rival it. However, SOL’s price has been on a decline following a general decline in the crypto market over the past three weeks.