Solana (SOL) has remained bearish as the cryptocurrency faces a significant price decline. At press time, Solana’s price is $134.92 which has decreased by 3.75% in one day. This comes after many months of volatile prices and unrelenting bearishness since March this year. Solana reached its high of around $200 before the beginning of the crypto market’s beginning. In August, the price was lower than $150 and since then, it is in a constant decreasing process.
Ongoing Price Struggles and Market Sentiment
Cryptocurrency analyst Nebraskangooner recently highlighted this decline, pointing to fractal patterns in Solana’s price movements. He suggested that SOL’s price could continue following a repeating pattern of decline. This observation has added to market concerns, as many traders consider fractals a reliable indicator for predicting future price movements. Technical analysis shows that Solana has repeatedly struggled to break resistance levels, particularly around $190. This has added to the selling pressure, with the price now struggling below key thresholds.
$SOL
— Nebraskangooner (@Nebraskangooner) October 3, 2024
Fractal keeps going I guess. https://t.co/FrGwPeCZy5 pic.twitter.com/lNSRYlhbPF
The chart also contains the lines of moving averages that allow determining the price trend. A slower-moving average is above the current price indicating more bearish action. Also, trading volumes rose during price drops and failed rebounds. But, volume has decreased recently. This low trading volume matches Solana’s falling price. It shows the market is skeptical of the Solana project.
Debate Over Solana’s Centralization and Usage Decline
At the Token2049 conference, whistleblower Edward Snowden criticized Solana, calling it a centralized blockchain. This sparked debates about the network’s governance structure and security. Snowden’s comments fueled concerns about Solana’s focus on speed and efficiency at the expense of decentralization.
Google Cloud Teams Up With Solana Labs to Launch GameShiftIn return, Solana’s supporters have stood for its validator pool which they say improves scalability and capability. An upcoming protocol called Firedancer also attempts to enhance decentralization by adding a second validator client. But concerns about the centralization of Solana still remain, which impact investor sentiment.
Further challenges have emerged due to a decrease in decentralized application (DApp) usage on the Solana network. The decline in network activity reflects reduced developer and user engagement. This has resulted in an oversupply of SOL tokens in the market, pushing prices down further. As the network continues to face these technical and centralization challenges, market sentiment around Solana remains cautious.
