Julius Mutunkei
The crypto markets are currently seeing price plunges, which began about a week ago. Solana (SOL) is one of the cryptos suffering the most in the current declines.
Solana down 18% in a week
Solana is trading at just about $18.78. Twenty-four hours ago, this coin was trading at just about $20.35. As such, this coin has lost around 8% in the past 24 hours.
Looking at the charts, solana has been trading in the red for most of the day. While at the start, it managed to surge to $20.54, it quickly took a negative turn and continued with the downswing momentum.
Seven days ago, solana was trading at just about $22.60. Like the 24-hour charts, the 7-day chart also shows that Solana has been trading in the red for the past week. The chart indicates that Solana is currently down by over 18% for the past week alone.
SOL’s sharpest decline in the whole of last week was recorded in March. 3. This coin declined from $22.09 to about $20.57, a drop of 6.9% in just about 4 hours.
Furthermore, the charts indicate that SOL did not attempt any recovery throughout the past week. Its best price surge was on March 5 when the coin rose 5.6% from $20.52 to about $21.57 and immediately began declining.
While the buyers are trying to take control of the market, sellers continue winning, with Barchart suggesting that 56% of the trades are sales.
SOL’s most immediate resistance and support are $20.60 and $18.50, respectively. Based on its current price movements, this coin will likely break below support very soon.
Why is Solana declining?
There are lots of theories surrounding the current price declines of SOL. Of course, the current market direction is bearish after Silvergate’s problems; hence, most coins are declining.
There are also recurring complaints of Solana chain outages from time to time. Such complaints are for sure driving project developers away from the Solana blockchain.
Based on some expert data, SOL could dive for the worse, and may trade under $12 in the coming weeks.