The Solana SOL price, during trading today, Wednesday, December 28, fell by 10% over the past 24 hours, and it seems that the digital currency is still struggling a lot in the current period.
The fight for the Solana Blockchain platform has grown exponentially after the collapse of the FTX exchange. The platform’s SOL token price has fallen by 73% in the past 8 weeks due to sell-offs by Alameda Research and sister investors FTX. NFT projects and validators are moving to other blockchains. Amid growing fear and uncertainty, here is what the on-chain data indicates about the Solana Network as well as the Solana SOL price.
Solana loses his brilliance amid mounting confusion
Santiment, the blockchain analytics platform, said in a tweet today, Wednesday, December 28, that rumor processes surrounding Solana have continued to rise with the crypto community on Twitter in recent days. Solana’s relationship with FTX and Alameda severely affected her reputation in the crypto market. This led to the price of the SOL token dropping by 73% since last November 5.
Solana’s price is down 10% in a day
According to on-chain data, Binance Funding Ratio turned positive on December 27, and traders have been planning long for the heavily tracked SOL asset. However, the price of Solana SOL fell by more than 10% in a few hours due to massive liquidations. SOL price recorded as low as $9.91 today as expected by some cryptocurrency analysts.
The bear market has affected Solana greatly, as it has seen many blockchain exploits and outages, and developer downtime. Recently, DeGods and y00ts, Solana’s top NFT projects, announced plans to migrate to the Ethereum and Polygon blockchains, respectively. According to DappRadar, DeGods and y00ts are the two best NFT pools on the Solana blockchain.
Moreover, Solana’s total TVL locked value dropped from $10 billion to $210 million in just one year, according to DeFiLlama. Santiment data confirmed that developer activity has also dropped significantly.
Solana SOL price risk recedes further
Solana coin price is currently trading at $9.97, down 10% in the past 24 hours, and 18% in the week. The lowest level during the past 24 hours and the highest price are $9.91 and $11.21, respectively.
A 167% increase in trading volume amid the Solana SOL price decline in the past 24 hours indicated declining sentiment. Technical indicators have drawn a more bearish direction for SOL price, and it expects a drop to $8.20. Moreover, if the SOL price breaks above the $10.50 resistance level, the rise might not last for long periods.