SOL Shrinks 2% – Is It Leaving Competitors Behind?

Updated: 22 August 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Solana has decreased by 2% in the last 24 hours, adding to its 15% weekly decline today. This drop coincides with Bitcoin losing support and Solana being listed from cryptocurrency exchanges. Does it have a chance to make a comeback, or is it time to look for alternatives?

Solana Drops 0.96%

The latest chart on CoinMarketCap shows that Solana has dropped by 2% before experiencing a minor bounce, which allowed its price to moincreasemaking the total daily drop to be96%.

This drop has decreased its market capitalization by 0.87%. However, there has been a 42% increase in its trading volume, indicating a selling frenzy for SOL.

This drop has created a hostile ecosystem for Solana, as the technical indicator on Tradingview shows a strong “sell” sentiment around this token.

Regulatory Blows Have Undermined Solana’s Development

Shortly after its launch, Solana was hailed as one of the best altcoins in the world. The reason behind it was its scaling solutions, which made way for more innovation in the blockchain industry. But despite that, Solana was no stranger to controversies.

The scaling solutions it provided traded off security features, which caused it to be the recipient of multiple hacking events. Those events, and the arrival of crypto winter in 2022, triggered the fall of SOL, and it went from trading just above $122 to barely above $10.

2023, however, introduced multiple positives in the blockchain ecosystem, which pushed Solana 2x from its 2022 lows and trade above the $20 mark.

Factors that helped Solana reach its newfound growth were the different DeFI projects that captured the crowd’s attention. Solana Daily tweeted on X (formerly known as Twitter) that the DeFi is rising again.

🌟 GM, #Solana community! 🚀#SolanaDeFi is back on the rise, and it's time to ride the waves!

🌊 Which @solana projects have captured your attention this time?

🔥 Drop those project names below and let's navigate this exciting journey together!$SOL pic.twitter.com/YaumPH49qP

— Solana Daily (@solana_daily) August 17, 2023

Responses to this tweet on August 17 hinted at the positive sentiment around this project. However, the token hasn’t been doing well in the regulatory aspects.

The battle between Binance and the SEC had many casualties, including 61 cryptocurrencies that the US Securities and Exchange Commission now sees as securities. These assets include Cardano and Solana.

Solana faced other market downturns, but Solana-based devs didn’t worry since the project’s fundamentals are utility-based. However, the announcement by the SEC has had a lasting impact on Binance, the exchange which is already in contentious waters against the commission.

As a result, Binance recently decided to delist the trading pairs involving Solana. The delisting will happen on August 28th.

This, combined with Bitcoin’s struggle to keep itself afloat above the $26k mark, has had a double-negative impact on the Solana price, resulting in its bearish performance.

Solana Price Analysis – Will it Move Up?

Candle charts showed that Solana took a steady growth trajectory which coincided with Ripple’s partial win against the SEC. Ever since then, however, the token has taken a bearish stance.

That said, upper and lower trendlines indicate they can coincide, supported by the token’s current RSI, steadily moving down. When the intersection between the upper and lower trendlines happens, we might see Solana’s RSI inside the oversold zone, whbringingore bulls to support the token and engineer a significant bounce.

But the token’s consolidation around its current level over the next week could invalidate the trendlines and the prediction.

With so much uncertainty around this token, looking for an alternative asset with better upsides is better.

Solana Alternative – Launchpad XYZ

Launchpad XYZ is an all-in-one Web 3 crypto making rounds during its presale. This project encompasses all the aspects of Web 3 in a “human way” and aims to increase Web 3 adoption rate.

The platform’s main USP is the Launchpad Quotient, a unique scoring system that combines 400 data points to find the best Web 3 projects for players to invest in.

🎉 HUGE NEWS! We’ve just crossed the $1.2 million mark in our #Presale!

A heartfelt thank you to our incredible community. The journey has only begun 🚀

Join the $LPX presale today! ⤵️https://t.co/6qHqqRBG7F #LaunchpadXYZ #Crypto #Web3 #Trade #Alts pic.twitter.com/fZpXciMLVp

— Launchpad.xyz (@launchpadlpx) August 8, 2023