Solana price has been stubbornly holding above the critical support in the wake of a widespread pullback in the cryptocurrency markets. The cryptocurrency has slipped more than 86% since the start of the year and more than 20% in the last 4 days. At the time of writing, Solana was trading 5.81% lower at $27.92.
Solana Price Outlook
Solana price was down on Tuesday as the crypto market sentiment inched lower. Solana’s total market capitalization has crashed more than 8% in the past 24 hours to $10 billion. However, the total volume of Solana traded in the last 24 hours has jumped more than 93%. SOL is ranked the 11th most valued cryptocurrency in the world, after Polygon.
According to data by CoinMarketCap, the global crypto market cap has slipped by 3% in the last 24 hours. On the other hand, the total crypto market volume has increased by 53% over the last 24 hours.
Solana price has been following a downward trend of most crypto assets since the start of the year. Experts have revealed that they are losing trust in the Solana team. The network has been experiencing a series of issues throughout the year, among them security lapses and constant outages.
In 2022 alone, the network has suffered at least five significant outages with some lasting for days. Earlier in October, Solana lost nearly $1.5 billion in a week due to block-chain related exploits and outages.
That said, Solana has been recording increased growth, surpassing 1oo billion transactions in late September. This marked the highest number of transactions in the network since its launch in 2020. Investors are overlooking the blockchain outages and favoring continued network growth when considering the outlook of the ‘Ethereum killer.’
Solana Price Forecast
The 4-hour chart shows that Solana price has been on a strong bearish run for the past few days. It has managed to move below the 25-day and 50-day moving averages. The SOL price has also crashed below the 50-day exponential moving average.
Therefore, the SOL price is likely to continue falling as concerns about the crypto market intensify. If this happens, bears will be eyeing the critical support at $27. However, a move past the resistance at $30, will invalidate this view.