In a context of general market decline, the Blockchain Solana, a leading blockchain platform known for its fast and low-cost transactions, fell to its lowest level in 45 days. This sparked a frenzy within the crypto community, with several supporters unsure of the asset’s next near-term trajectory.
Solana underperforms major cryptocurrency assets
TOBTC crypto trading platform and analyst sharing negative developments on platform X (formerly Twitter). According to recent trading data cited by the expert, blockchain has declined significantly, indicating a significant decline in investor confidence in the cryptocurrency industry as a whole.
The platform noted that Solana fell to a 45-day low, down an additional 24% since June 7, underperforming the broader cryptocurrency market. Data shared by the platform shows that the Solana Network has fallen significantly behind major networks like Ethereum, Arbitrum, BNB Chain, Polygon, and Optimism, among others.
This decline occurs when macroeconomic uncertainties and cautious attitudes of traders lead to greater volatility and selling pressure in the digital asset market. For SOL, whose price has declined from its previous highs, the 45-day low represents a turning point that has raised concerns about the crypto asset’s near-term outlook.
TOBTC attributes this decline to a combination of broader market weakness and particular difficulties faced by the network. These include reduced on-chain activity, lack of demand for leveraged positions, and competition from other smart contract-focused blockchains.
Without increased demand or institutional support, the platform says SOL’s valuation could continue to decline, possibly surpassing the pivotal support level of $130 or less.
GROUNDThe inability to maintain an upward trajectory and overcome significant resistance levels could also be attributed to the decline. SOL lost support, falling from the price of $161 to around $138 last week. However, the crypto asset sparked positive price sentiment today, demonstrating its strength for further gains.
SOL poised for substantial rise in fall
Despite this negative development observed with SolanaWell-known cryptocurrency expert and CEO of Real Vision, Raoul Pal is still optimistic about a potentially massive rally for SOL in the near term.
On Tuesday, Pal offered an exciting prediction for the digital asset, citing the current price as a good entry zone for investors interested in entering the market. “If you wanted a cheeky complement to your SOL position, this would probably be a good entry zone,” he said.
Pal, in his bullish forecast, compared SOL’s potential growth to that of bananas which are now beginning to ripen. As a result, he is confident that the digital asset during the upcoming fall season will be magnificent.
Featured image of Adobe Stock, chart from Tradingview.com
