Bitcoin [BTC] is not the only cryptocurrency that has taken a hit in the past few days. Altcoin, Solana [SOL] too hopped on the same bandwagon of plummeting prices.
Down by a massive 20% in the last seven days, the price of SOL stood at $34.96, on 23 August, at the time of writing.
Although the price surged by a minor of 0.32% in the last 24 hours of 23 August, things still seemed stormy for the altcoin.
Solana has not just been hit in terms of price, but the altcoin’s trading volume too has suffered in the last three months.
In fact, the token’s market cap has gone down from $16.48 billion to $12.36 billion in the span of three months.
Many speculators believe that this is just the start of Solana’s downfall.
Consider this- an Ethereum maximalist Evan Van Ness on Twitter made a comment about how it will go back to its intrinsic value which is zero.
Back to the intrinsic value of zero?
— Evan Van Ness 🦇🔊 (@evan_van_ness) August 22, 2022
Although a cynical take for most SOL investors, a lot of speculators believe that the bearish momentum will continue.
In addition to the aforementioned information, the overall social media sentiment highlights the fact that SOL might as well fall below the $32 mark.
As displayed in the chart below, Solana has been getting a lot of traction on social media. But unfortunately for SOL, the majority of the sentiment has been negative.
SOL doesn’t bother
Well, the negative sentiment towards the alt is reflected in the price of SOL on the one-day chart. It has been supporting sellers with occasional upticks.
The price has been fluctuating within the $48 and $32 marks. This has led to some traders adopting the simple strategy of selling when the support level is tested and buying when the resistance is met.
But due to a growing bearish sentiment for Solana, some traders expect the prices to test the $26 mark yet again. Additionally, some are expecting the prices to plummet even further.
SOL has a silver lining
Apart from no massive plummeting prices, SOL has some good news for its investors. Solana recently announced that the Coinbase wallet can be connected to Solana dApps. Users would now be able to interact with Solana-powered DeFI, games, and crypto tools.
Despite the presence of cynicism around Solana, there is still a possibility of SOL bouncing back. Thus, traders/investors must not lose confidence in the SOL of Solana just yet.