Solana (SOL) has not seen the best performance, as a blockchain in the last few days, a sentiment that is beginning to raise concerns in the hearts of its users, investors, and analysts alike.
Solana (SOL) Seeing Price Reversal
After climbing as far as $200 a few days back, Solana has seen a significant price drop to less than $180.
Upon surpassing $200, the Layer-1 protocol began to struggle to sustain its newly acquired position. The overhead supply ended up rejecting the price recovery twice within three weeks, fully showcasing the formation of a double-top pattern. The bearish outlook suggested that a correction is imminent for Solana over an extended rally.
It wasn’t long after that Solana registered a 7% plunge in value, however, this slump was tied to the frequent outages and congestion that the network has been experiencing for some time. The sharp price slump suggested that investors’ sentiments were dwindling at an alarming rate.
Commenting on this trend, the Founder and CIO of Cyber Capital Justin Bons opines that the congestion-induced drop in transactions on the Solana network has negatively impacted user experience to an unacceptable level.
Solana is failing right now
The rate of dropped TXs has degraded SOL’s UX to an unacceptable state
Victory laps by modular scaling advocates are premature, though, as this will be fixed within weeks
SOL will return to reliably hosting more TPS than ETH & all L2s combined soon!
— Justin Bons (@Justin_Bons) April 8, 2024
Meanwhile, Bons believes that Solana’s recovery is around the corner and once this happens, “SOL will return to reliably hosting more TPS.” With a lot of boldness, the Cyber Capital founder stated that soon Solana’s transactions per second will outweigh that of Ethereum and other Layer-2 put together.
He noted this will be possible with the Modular scaling development that is poised to be shipped in weeks.
Will Solana Scale Past Previous Support Levels?
The coin is currently exchanging hands between $170 and $180. It is not yet certain how long the correction period will last but the reversal is suggestive of a double-top pattern.
If this is the case, Solana may be in for a prolonged price downtrend as the situation reflects the building selling pressure. With the market down a few days ago, it appeared that the price was heading towards the pattern’s support at $163.
If the bearish breakdown goes below this support level, sellers are bound to be at an advantage and a 25% drop to hit $120 might be recorded.
Apart from SOL, other cryptocurrencies in the L1 ecosystem are currently performing optimally, fuelled by the ongoing memecoin frenzy. Dogwifhat (WIF) is gaining attention from investors who perceive the prospect of this cryptocurrency. Tensor (TNSR), an emerging protocol in the Non-fungible token (NFT) ecosystem built on Solana is also making waves.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/can-solana-sol-shine-again-expert-shares-epic-prediction/
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