Following a tumultuous week that saw the Solana ecosystem suffering multiple hacks and outages, its price continues to suffer in the markets. This week, Solana’s price is down by 3 per cent, extending the monthly drop in value to 12 per cent.
However, it is not just the recent hacks and outages that have impacted Solana’s price in the markets. According to data from DappRadar, the number of active wallets interacting with its ecosystem is also going down. Recent data indicates that 13 out of 20 decentralized applications (dApps) in the Solana ecosystem had reduced interaction with the ecosystem.
The Solana price decline has also been impacted by the recent downturn of the cryptocurrency industry. Since May, the industry has struggled in the markets, which has seen its market capitalization drop below the $1 trillion mark. Solana, which is significantly correlated with the industry, has also seen its price dragged down by the current market forces.
Solana has also continued to lose investors and users, which has also contributed to the current bearish trend. Following last week’s $100 million cyberattack on Solana-based decentralized protocol Mango, Solana’s total value locked dropped by more than 23 per cent from $1.32 billion to $997 million. The drop was also a reminder of how far the platform has fallen because on November 9, 2021, the Total value locked was more than $10 billion.
In today’s trading session, Solana is up by a percentage point. However, as we have seen above, the platform continues to struggle in the markets, mostly due to its underperformance and issues with its ecosystem, which has seen it lose the interest of its investors and customers. Also, based on the price action of the past few weeks, Solana’s price has struggled in the markets and has not traded in a bullish trend for a very long-time.
Therefore, my Solana price prediction expects the current horizontal trend to continue. I expect Solana to continue trading within the narrow range of between $27 and $35, as it has done since September 14. A trade above that level will invalidate my sideways trend analysis.
This post was last modified on Oct 20, 2022, 15:14 BST 15:14