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Solana (SOL) Bullrun Gains Evaporated as It Drops to 2021 Levels

Sun, 06/05/2022 - 16:30
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Arman Shirinyan
Despite losing all of 2021's gains, SOL is still up massively since initial offering
Solana (SOL) Bullrun Gains Evaporated as It Drops to 2021 Levels
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Previously, market-leading Solana—which should have become the next "Ethereum killer"—failed to live up to its nickname and lost all of its gains since summer 2021, following the fall of the NFT and DeFi industries.

As the daily chart of the coin suggests, Solana is currently trading at the level of August or July of last year. The coin's performance since its all-time high reached back in November is at approximately 85%.

SOL Chart
Source: TradingView

Since November, Solana has been moving in a strong downtrend, which it has not broken for over 200 days. Currently, the price of the coin is at the lower range of the trends, showing that there could be a short-term bounce ahead.

Fundamental problems of network

Unfortunately, the demand for DeFi and NFT projects is not the only issue with Solana. Ethereum maximalists and Solana haters are using the "Sqlana" nickname for the coin more than ever, following constant downtimes and other issues with the network.

Recently, Solana had another downtime following the complete outage of the network. Following issues with the blockchain, the selling volume on the market spiked to a high level.

Related
Ethereum Hashrate Hits New ATH, While New Investors Inflow Network

Some pro-Ethereum users are joking about the existence of a "Solana status page" which tracks the performance of the network and any type of issue it currently has. The existence of such a service is a curiosity for any blockchain-based product or service and is more traditional for Web2 websites and platforms.

But despite the negative price and technical performance in recent months, Solana is still up massively since the initial offering, resulting in around 2,500% profit for the earliest investors.

At press time, SOL is trading around $40 but struggles to gain a foothold above the psychological resistance level.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.