Solana
Snowfall in Solana? Prices Fall Amid Market Correction – Will It Get Worse? — TradingView News
Solana, the high-speed blockchain once hailed as an Ethereum killer, finds itself in troubled waters. After reaching an all-time high of $203 in March 2024, the cryptocurrency has seen a significant correction, currently trading at $145. Analysts warn of a potential free fall, citing both external market forces and internal ecosystem issues.
The descent of Solana: a shooting star loses its shine
Technical indicators paint a gloomy picture for Solana. Alan Santana, a prominent crypto analyst, points to the emergence of bearish candlestick patterns like shooting stars and inverted hammers, alongside a decline in trading volume. These signals suggest a potential loss of momentum and investor confidence.
Further fueling the bearish sentiment, the broader cryptocurrency market has entered a correction phase. Bitcoin, the industry barometer, has fallen from its highs, dragging other digital assets with it. This market-wide decline weakens overall demand for Solana, driving down its price.
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Solana peaked in March 2024, with Bitcoin. A month later, in April 2024, a market correction was confirmed. This is confirmed by the fact that the support has broken, in this case we have a “ceiling” model.
Notice the shooting star,… pic.twitter.com/JKynUDENJd
Solana internal struggles: network congestion and founders’ feuds
Beyond external market pressures, Solana faces internal challenges that threaten its stability. The network has experienced periods of congestion, hampering transaction speed and scalability. These setbacks undermine Solana’s core value proposition of being a faster, more efficient alternative to Ethereum.
Adding fuel to the fire, recent public feuds between the founders of major Solana-based projects have cast a shadow of disunity over the ecosystem. Such internal conflicts raise concerns about the leadership and long-term viability of the platform.
Solana: can it weather the storm?
The current situation presents a critical turning point for Solana. The future of cryptocurrency depends on its ability to meet these challenges.
On the one hand, some analysts remain optimistic. Investment giant Franklin Templeton recently identified Solana as a potential contender for third place in the cryptocurrency market, highlighting its long-term growth potential.
Additionally, the upcoming Breakpoint conference in Singapore, a major gathering for the Solana community, could serve as a catalyst for renewed investor confidence.
Solana’s story is far from over. It remains to be seen whether he will emerge from this storm as a resilient leader or whether he will take a back seat. The coming months will be crucial in determining the long-term trajectory of the cryptocurrency.
Featured image from Reformed Journal, chart from TradingView