Can Solana (SOL) Shine Again? Expert Shares Epic Prediction

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In recent times, Solana’s (SOL) blockchain hasn’t shined brightly, prompting growing unease among its community of users, financiers, and experts.

Solana (SOL) Seeing Price Reversal

In the past few days, Solana’s price climbed up to around $200 but has since then experienced a substantial decrease, now hovering below $180.

When Solana’s Layer-1 protocol reached and surpassed the $200 mark, it encountered difficulties in maintaining its new height. The increased supply pressure refused to allow the price to bounce back on two separate occasions within a three-week span, revealing the development of a double-top chart pattern. This bearish trend indicated that Solana was due for a correction during an extended uptrend.

After that point, Solana’s value dropped by 7% in a short period. This decline was linked to the persistent issues of outages and network congestion that Solana had been experiencing for some time. The significant drop in price indicated that investor confidence was rapidly waning.

According to Justin Bons, the Founder and CIO of Cyber Capital, the increase in network congestion on Solana has led to a significant decrease in transactions, resulting in an unsatisfactory user experience.

Solana is failing right now
The rate of dropped TXs has degraded SOL‘s UX to an unacceptable state
Victory laps by modular scaling advocates are premature, though, as this will be fixed within weeks
SOL will return to reliably hosting more TPS than ETH & all L2s combined soon!
— Justin Bons (@Justin_Bons) April 8, 2024

Simultaneously, Bons is optimistic about Solana’s imminent recovery, and he anticipates that “SOL‘s transaction speed will once again comfortably surpass that of Ethereum and other Layer-2 solutions combined.” With confidence, the Cyber Capital founder expressed this belief.

This can be achieved through the imminent delivery of the Modular scaling update, which he mentioned would become a reality.

Will Solana Scale Past Previous Support Levels?

The coin’s value is fluctuating between $170 and $180 at the moment. The duration of this correction phase is uncertain, but the recent price movement hints at a potential double-top formation.

If the current trend holds, Solana’s price could experience an extended drop due to increasing selling pressure. Just recently, the market saw a decline, bringing Solana close to touching its support level at $163.

If the bearish trend breaks through this support level, it could give an edge to the sellers potentially causing a significant decrease in price, down to around $120, which represents a 25% drop.

In addition to Solana (SOL), other cryptocurrencies thriving within the L1 blockchain are currently experiencing peak performance, driven by the ongoing memecoin craze. One such currency, Dogewhats (WIF), has recently piqued the interest of investors due to its perceived potential. Another noteworthy development is Tensor (TNSR), a budding NFT protocol established on Solana, which is generating buzz in the community.

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2024-04-08 22:24