Unfortunately for Solana supporters and developers, it is not clear where the project is heading as the network's underlying cryptocurrency lost an enormous 96% from the ATH, practically making the assets worthless and bringing losses to investors that they will not be able to recover.
Technical analysis
Considering the lack of happenings around the project itself, it is difficult to justify the existing price performance with any news in the space about Solana. We are left with nothing but technical analysis in the case of Solana.
Obviously, the asset is moving in a prolonged downtrend, while breaking every support level possible. Recently, SOL has entered a short-term uptrend, which has been more of a correction of a downtrend rather than an attempt to reverse. But even with short-term upward movement, bulls might be able to push assets further up. Unfortunately, this was not the case for Solana.
The most recent spike in trading volume also was not a bullish case for Solana, as it was most likely part of a realization of the previously mentioned millions of SOL that have been withdrawn from staking contracts.
What's the future for Solana?
As U.Today mentioned in one of our previous articles, it is not yet clear how the team behind Solana plans on pulling the cryptocurrency from the abyss of the cryptocurrency market and making it something useful in early 2023.
The majority of developers and large projects are abandoning the blockchain for networks like Polygon and Ethereum. Without usage and activity, Solana will turn into a ghost chain that will not even attract speculators who are trading illiquid assets. The future does not look bright for what used be an Ethereum killer.
Yuri Molchan
Tomiwabold Olajide
Godfrey Benjamin