Despite Solana’s (SOL) receiving huge support from the former CEO of FTX, the value of the cryptocurrency has been heading in the wrong direction since the collapse of the FTX crypto exchange and the arrest of Sam Bankman-Fried.
Has SOL price bottomed out? What’s next?
Currently, Solana is trading at $10.02 after falling over 10.25% in the last 24 hours and over 17.16% in the previous seven days. Solana currently has a total market cap of $3.6 billion and ranks 17th by market capitalization according to CoinMarketCap data as investors move away from buying SOL.
Crypto trading analyst Matthew Hyland on Dec. “Solana is in nobody’s land. It drops to under $10 a night.”
Solana price action analysis. Source: Matthew Hyland
Solana price analysis
Notably, Solana has been following a stable bearish chart pattern over the past week, which looks “overly ugly in the short/medium term” especially if it loses the critical area on the High Time Frame (HFT) charts cited by crypto analyst Altcoin.
The anonymous expert suggested that the likely scenario for Solana in this situation is “probably to fill the void and have $5 in line.”
Solana price action analysis. Source: Altcoin Sherpa
Interestingly, the total value (TVL) locked in Solana also fell from $6.68 billion at the start of the year and currently stands at $209 million as of December 28, according to DeFiLlama data.
Solana TVL. Source: DeFiLlama
Moreover, after months of rumors that DeGods and Y00ts, two of the most successful Solana non-fungible token (NFT) projects, would leave the Solana network, the teams behind the projects finally confirmed the move on Twitter on Dec. The team said it will migrate to the Ethereum (ETH) blockchain and Y00ts will be migrated to Polygon early next year.
Rohun Vora, leader of the project known as Frank, on Twitter Spaces “[DeGods]There is an argument to be made that ‘contains Solana'” said.
Months of bickering on NFT Twitter preceded the move, with several builders in the Solana NFT industry criticizing the migration and a large number of collectors applauding the move.
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