Solana News Today: SOL Down 30% In a Month – Why is Solana Crashing?

Solana will end the week in the red, down by 10% in the last 7 days and by more than 30% in a month.

The altcoin keeps tanking amidst renewed investor interest in the Solana Ecosystem tokens.

Over the last seven days, Solana prices have crashed by more than 10%, bringing the total value lost in the last 30 days to more than 30%. This makes it the worst-performing asset in the top ten crypto bracket and wiping much of the gains made over the last six months.

Interestingly, the bearish sentiments towards Solana haven’t affected the market’s optimism toward the tokens in the SOL ecosystem. Just yesterday, for instance, the first layer-2 token of the network – Solax, announced that it had raised $22 Million in the latest presale event.

So why is Solana Crashing?

While a number of factors may be attributed to Solana’s disappointing price action, two stand out. The first is the billion-dollar LIBRA scandal – a meme coin that lost close to 90% of all investors’ money after being hyped by Argentinian President Javier Milei. 

The second would be the wait-and-watch mood that has engulfed the crypto market. It has forced most coins into a consolidation phase. It also explains why the likes of Bitcoin remain stuck below $98k, as well as why Ethereum has been unable to rise above the $2800 resistance level.

When will Solana recapture $200?

With weak technical and no trend-reversing events on the horizon, it is clear that SOL will probably toil around the $170 price level in the coming days.

From a technical perspective, both volume and momentum indicators are currently leaning bearish. It, for example, has an RSI of 46, implying that Solana is currently loitering around the oversold territory. Further, the MACD line on the SOL/USDT daily chart recently crossed the signal line from the top, confirming a bearish reversal.