The price of Solana has been under pressure over the past two months amid growing concerns about its ecosystem.
Solana (Sol) sweeped $71 billion this week as its market value fell from an annual high of $295.52 to a low of $112 this week, with market capitalization plunging from $139 billion to $68 billion.
The Solana crash was due to an ongoing cryptography crash This brings the industry's overall market capitalization to $2.8 trillion.
The price decline has also been driven by growing concerns about Solana's ecosystems and is increasingly linked to Meme Coins. Market capitalization of all Solanamemme coins What Coingecko tracked down fell from over $25 billion to $7.7 billion earlier this year. An important concern is that many of these meme coins have been found to be ragpur scams.
Another factor in comparing Solana prices is the massive token unlock associated with the recent FTX distribution that took place earlier this month. Unlocking a token introduces more tokens into the circulation, creating potential dilutions and downward pressure on price.
Solana has also lost its market share in the DEX industry to Ethereum (ETH). According to Defi llama, The total amount processed by the DEX protocol in the network over the past 30 days was lower than Ethereum's $84 billion, at $76.95 billion.
Solana Price Technology Analysis
On the positive side, the signs suggest that Solana can stage a strong comeback once the current crypto crash is alleviated.
The weekly chart shows that accumulation and distribution metrics have continued to rise over the past few months, indicating investors are accumulating SOL during the recession.
Most importantly, the Solana forms a bullish layer featuring cup and handle patterns, round bottom, horizontal resistance lines and pullbacks.
In the case of Solana, the horizon connects the highest levels of 2021 and 2024. The ongoing retreat represents the formation of a handle section. If Solana is over $100, there is a strong chance that it will be possible to hold a meeting.
The cup depth is approximately 95%. Measurement of the same distance from the top of the cup suggests a surge of ultimately up to $505, meaning a 270% increase from the current level.
An important warning is that the cup and handle patterns take time to complete. This means that 270% of surges can take months or years. For example, it took three years for the cup section to form.
