Solana
Solana Price Forecast as Scam Concerns Remain
Solanathe price fell sharply on Tuesday morning as a sea of red spread across the crypto market. SOL fell to a low of $135, its lowest level since May 3. It has crashed more than 35% from its highest point this year, meaning it is in a deep bear market.
Scam concerns rise
Solana, one of the fastest growing blockchains, has performed well over the past few months as it continues to attract more developers.
Many important indicators work well. For example, it overtook Tron and Binance to become the second largest player in decentralized finance (DeFi) after Ethereum.
Its DEX networks like Raydium, Orca and Jupiter have become very popular among traders. They have also become the closest rivals to popular Ethereum networks like Uniswap, dYdX, and Curve.
However, there are now concerns that Solana has become the blockchain network of choice for fraudsters. One of the most popular approaches has been the launch of meme coins, which have exploded recently.
Today, anyone can flip their coin using platforms like Pump.fun. Most creators choose Solana because its network offers faster speeds and low transaction costs.
While the growth of this ecosystem is good, meme coins have become unregulated scams where people launch tokens, pump them, and then exit their trades.
For example, as we wrote recently, Davido, a Nigerian singer, threw a chip, pumped it,then walked out with over $400,000. Today, the $DAVIDO token fell to its all-time low.
More recently, we’ve seen celebrities like Andrew Tate and rapper Iggy Azalea promote their DAD and MOTHER tokens. As these tokens grew, on-chain data shows that insiders abandoned them.
For example, several insiders abandoned the very popular BEERtoken, causing its price to collapse sharply.
Therefore, there are concerns about the security of the Solana network and the impact of these meme coins in the long term. This is one of the reasons why the SOL token has crashed hard in recent weeks.
What is clear is that Solana’s popularity has led to enormous revenue growth in the ecosystem. Data shows that Solana’s fees have soared this year to over $220 million, making it the sixth most profitable network after Ethereum, Bitcoin, Tron, Uniswap and Lido.
Solana Price Forecast
The daily chart reveals that Solana price peaked at $210 earlier this year and is now undergoing a heavy sell-off. It then reached another high at $188.7 in May.
The token has formed what looks like a double top chart pattern and crossed the 50-day exponential moving average (EMA). The double top is a very popular bearish pattern in the market.
Solana has now found some support at the 200-day EMA. A break below this level would indicate further decline as sellers target key support at $120, the May low. A fall below $120 will lead to further decline.