Solana’s [SOL] bulls are facing a tough battle. After three failed attempts in the past month to break out of its downward trend, the price continues to slide. The momentum just isn’t there.
A glance at the daily chart shows how the “Trump pump” gave investors a big boost, driving Solana to an all-time high of $264 after years of stagnation. You’d think such a rally would have prompted long-term holders to sell, but that hasn’t happened.
Instead, these committed investors seem to be holding strong, sparking hopes for a recovery. Still, with SOL losing much of its post-election gains, the risk of a steeper drop is growing. Even the most loyal holders might start to feel the strain if the downtrend continues.
Election Result Shakes SOL Price
The results of the election cycle have sent shockwaves through the market, creating clear winners in just 30 days. The excitement kicked in fast, with certain assets enjoying significant gains within a week of the announcement.
Ripple (XRP) took the stage center, blasting through a critical psychological barrier and achieving three-digit growth. But that was not the end – XRP surpassed Solana to rank as the fourth largest in terms of market capitalization.
On the other hand, it has not been easy for Solana to play catch-up among its peers, but some investors are still hopeful. There are further rumblings that SOL may mount an astounding rally, with some even forecasting a price of $500 by the end of Q1 next year.
While that seems like an incredible comeback, given its chart patterns in the past few months, one cannot overlook the fact that Solana has a checkered past of violent price movements. It’s a little too early to know what lies ahead, but this market has proved time and again that nothing can be ruled out.
What You Should Do Next on Solana (SOL)
The last few weeks have been a rollercoaster for SOL, with prices swinging sharply as bulls and bears battle for control. After dropping to $236, buyers stepped up, driving a 5% rebound in just three days.
Futures traders took notice, pushing Open Interest (OI) to a record $6.05 billion. However, the momentum didn’t hold, and OI has since fallen back to $5.16 billion. If you’re betting on SOL’s recovery, caution might be wise.
While the price may look appealing now, SOL hasn’t been grabbing the same attention as other altcoins. Even so, long-term holders remain steady, leaving room for optimism. A short squeeze triggered by major players could quickly change the game.
For now, shorts dominate the market, capitalizing on weak buying pressure. If bulls don’t regain control soon, SOL could dip below $200. That might test holders’ patience, but it could also create opportunities for savvy buyers to jump back in.
Solana is still battling to reverse its recent downtrend, even after the excitement of the “Trump pump” pushed it to a record high. While the surge brought renewed attention, long-term holders haven’t budged, signalling faith in its future.
However, the focus of the market has shifted to other election cycle highlights, casting its future upwards to Solana once again into some clouds. Similarly, people have raised questions on the token as well, curious on whether it shall make a comeback or whether the slide down does not end.
Frequently Asked Questions (FAQs)
1. Who are the owners of Solana?
Solana appeared on the stage in 2020, and it was developed by Solana Labs. The company was founded two years earlier, in 2018, by Anatoly Yakovenko and Raj Gokal.
2. What’s the highest Solana has ever reached?
Over the period of a week, it’s down by 7.46%. At this moment, Solana is trading 16.17% less than its all-time high, which was recorded at $264.18.
3. What is the current price of Solana?
At the moment, Solana stands at $226.56 with 479,040,385.798 SOL in circulation, hence making its market capitalization $105.75 billion. In the past 24 hours, trading activity decreased by $727.46 million, representing a decrease of 25.53%.
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