The cryptocurrency market is once again displaying poor performance. During this stage, traders are the ones who are profiting the most. With exact buy and sell zones, they can turn trade easily. Solana is one of those crypto projects that got influenced pretty badly by the latest crash. Its prices slammed recently by almost -29% in the past seven days. Will Solana price fall to $20?. Let’s explore SOL in this Solana price prediction article.
What is Solana Crypto?
Solana is a decentralized blockchain. It’s created to produce scalable, user-friendly apps more leisurely. SOL is Solana’s local cryptocurrency. In recent days, the SOL has gained a lot of attention, particularly due to the blockchain halts. SOL works in the same way as Ethereum’s ETH does. The sole dissimilarity is that SOL holders stake the token in the PoS consensus method to validate transactions. Users can also partake in governance methods, accept incentives, and pay gas fees. Solana is a single-chain, delegated Proof-of-Stake, and utilizes Cloudbreak, a shared log that stops transaction history from utilizing too much computer space.
Why is Solana price down?
SOL/USD Daily chart – GoCharting
In the past 24 hours, Solana price has decreased by almost 18%. Looking at figure 1, we can notice a downtrend channel assembling ever since mid-May 2022. SOL prices converged inside this downward channel. Swing traders worked to bank great by just buying and selling around those upper and lower trendlines.
The important thing to note here is that the Solana price has always retraced more downward when they touched the highest trendline, as shown in figure 1. This occurred with the whole crypto market, which indicates that most cryptocurrencies might be taking a short break after a comprehensive rise in prices.
Solana Price Prediction – Will Solana price reach 20$?
SOL/USD Weekly chart – GoCharting
As mentioned earlier, Solana is presently in a downtrend. We don’t anticipate prices to unexpectedly fly to $20 overnight. Yet, if prices were to split out of this bearish movement, we must notice the $25 price mark broken first. If this occurs, we can declare that the downtrend is not going anywhere. Once accomplished, the 20$ price mark is not far.
Yet, we don’t believe that this will occur if the cryptocurrency market does not heal as a whole. Bitcoin still dominates the crypto market, so anything influencing the crypto market, all-around, will definitely take a toll on Solana prices. In the last seven days, the BTC price has decreased by almost 17$. So, SOL too can continue to crash towards $25 if the bear market continues.
Will SOL Price Recover soon?
The main aspect that would benefit Solana price recovery is the rally in the global cryptocurrency market. Even if there was a breakthrough in Solana’s technology or powerful essential news relating to Solana, it won’t make any meaningful favorable result. As an instance, we can peek at the Tron project, which just threw its algorithmic stablecoin USDD. Prices of TRX barely rose before tumbling with the crypto market. Yet, this enabled hedging a complete failure, as TRX narrowly lost 10-15% since the heavy crash.
For Solana particularly, prices might recuperate from this drop in prices only if the market exhibits some indications of consolidation or recovery. At this stage, the former is more imaginable.