6 Reasons Why Solana Price Could Crash to $50

As a seasoned crypto investor with over a decade of experience navigating market turbulence and bull runs, I must admit that the recent 4.3% surge in Solana’s price during Wednesday’s trading session has caught my attention. However, as I’ve learned time and again from Bitcoin’s dance around $56,000, a brief uptick does not necessarily mark the end of a downtrend.

During the U.S. trading session on Wednesday, Solana’s price has risen by 4.3%. This surge in value was triggered by a broad market rally, with Bitcoin demonstrating a significant rebound from $56,000. Nevertheless, this brief upturn doesn’t necessarily signal the end of the downtrend, as sellers have regained their bearish momentum at a higher price level

Here’s why Solana Price May Tumble to $50

For the past six months, the Solana price has been fluctuating between approximately $210 and $122, indicating a period of consolidation amid significant price fluctuations on both ends. This suggests that neither buyers nor sellers have enough influence to dictate the direction. However, with a broader market trend and a prolonged correction in September, the Solana price approached its multi-month support of $120, hinting at a possible breakdown. Here are six reasons why the Solana coin might plummet to around $50

Declining Interest in Meme Coins Due to Bitcoin’s Decline

Influence of Bitcoin on the broader cryptocurrency market remains substantial, with bitcoin’s nearly stable pricing since March 2024. The recent fall of BTC to $56,000 has caused a significant decline in memecoins due to their volatile characteristics. The decreased enthusiasm for speculative tokens like meme coins impacts Solana’s user interaction and trading activity. With fewer investors involved in meme-based economies, the price of Solana might face additional downward pressure

Tron’s SunPump Diverts Capital and Users

As a researcher, I’ve observed that the SunPump initiative by Tron has emerged as a direct rival to Solana’s Pumpfun meme coin generator. This competition, often referred to as “Vampire Attract,” seems to have enticed users away from the Solana ecosystem with its more appealing incentive programs. Notably, data indicates that Solana’s daily network revenue plummeted from $1 million to less than $500,000 post the launch of SunPump

Ethereum’s EtherVista DEX Competition

Ethereum, a strong competitor of Solana, has just introduced a new decentralized exchange called EtherVista. This project allows for custom token launch settings and rewards long-term liquidity providers with revenue-sharing incentives. If Ethereum maintains its leadership position, the growth potential for Solana’s price might decrease, leading to less demand pressure

Rise of Solana Killers Like SUI

Blockchains such as SUI are being referred to as potential competitors or “contenders” of Solana, given their advanced scalability capabilities, security enhancements, and user-friendly development platforms. Additionally, the recent efforts by the SUI blockchain to facilitate offline cryptocurrency transactions using radio waves have sparked interest among developers and investors. This innovative development could lead to a more competitive landscape among various blockchains, potentially attracting users away from others

Sui Blockchain pioneers unique strategies such as utilizing radio waves for offline cryptocurrency transactions, providing financial services to unbanked populations who lack internet connectivity
— Eye On Globe (@eyeonGlobe_) September 4, 2024

Increase in Crypto Scams and Exploits

warning about crypto scams and rug-pulls in the blockchain community has been an ongoing issue. Lately, Slorg, part of Solana’s Jupiter’s Core Working Group, alerted his 18.7k followers on Twitter to a new method by which scammers can burn tokens within your Solana wallet. Although he provided tips to avoid these occurrences, such instances might lead to concerns about the security of blockchain technology and potentially undermine investor confidence

Scammers have found a way to burn tokens inside your Solana wallet
But with a little awareness you can avoid becoming their next victim.
(1/8)
— Slorg (@SlorgoftheSlugs) September 3, 2024

Bearish Crossover to Drive Selling Pressure

Over a span of just two weeks, the price of Solana dropped significantly from $162 to $134, which represents a notable decrease of 17%. This steep descent suggests that the market is moving towards further consolidation as indicated by two descending trendlines guiding the price action

The decrease in SOL‘s price might lead to a bearish intersection between the 20-day and 200-day Exponential Moving Averages (EMA), enhancing the control of sellers over this asset. If the downward pressure continues, the coin’s value could potentially break through the lower trendline support