Seven months after hitting $260, the price of Solana (SOL) crashed on June 3, bringing net losses on paper to 85 percent.
SOL fell 6.5 percent throughout the day to $35.68, reaching its lowest point in the intraday period in 10 months.
There is a possibility that the SOL/USD pair will see a retracement to the upside in the month of June, with a target range of $40 to $45, which is up 25 percent from its price on June 4.
60% drop in the price of SOLANA?
Solana price trails Bitcoin (BTC), the cryptocurrency with the largest market capitalization, which is the main factor driving the development of altcoins.
On June 4, there was a 0.92 weekly connection between BTC and SOL.
Should Bitcoin drop below the $30,000 psychological support line, Solana stands to lose much more.
The Federal Reserve is expected to raise interest rates and reduce the size of its balance sheet. By allowing riskier assets such as Bitcoin to lose value, this hawkish stance makes Solana’s positive outlook less likely.
If the current SOL support level of around $35 is broken, there is more chance that the price will drop to $18-$25. This price range served as a strong support zone between March and July 2021, just before the price surged 1,200%.
sunshine down
The negative estimate for SOL was released at the same time that the SOL blockchain was experiencing repeated outages, making its crucial dapps unavailable for many hours.
The software problem that occurred on June 1 caused SOL’s network to be inaccessible for about 4.5 hours. The blockchain had an outage that lasted 18 hours in January.
Validator operators successfully completed a cluster restart of Mainnet Beta at 9:00 PM UTC, following a roughly 4 and a half hour outage after the network failed to reach consensus. Network operators an dapps will continue to restore client services over the next several hours.
— Solana Status (@SolanaStatus) June 1, 2022
The outages risk scaring off investors, which would benefit SOL’s competitors. Some merchants have already transferred their money elsewhere.
Just sold all of my $SOL for $ADA. Solana is a great project but personally I cant in good faith continue to invest in a layer 1 that shuts down on a frequent basis (partial and major outages about 11 times).
— $Smac07_NFT$ (@Shawn_Deezy07) May 31, 2022
#ADA #Cardano
According to independent market expert Miles Deutscher, cryptocurrency investors are cautious after Terra. The specialist anticipates that there will be fewer power interruptions as SOL continues to expand.
“However, if they are not able to put an end to events of the same nature, the competitive L1s will continue to eat their market share,” he warned.
