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Solana (SOL) is one of the top 10 cryptocurrencies and has undergone a deep correction of more than 75% in 2022. Though Solana is considered as one of the fastest layer-1 blockchains, it has been facing multiple issues ranging from a recent 8-hour outage in May to a wormhole attack in Feb. The outages have meant a brief restart of the blockchain which is against the nature of decentralization. Solana, clearly, seems to be under the heat of late.
However, at the time of writing, Solana is up by 12% in the last 24 hours and is currently trading at $44. Moreover, the launch of ChainLink oracles on its Mainnet recently has once again pushed up Solana's prospects, notwithstanding its flaws.
Let's look at Solana's recent performance vis a vis Bitcoin (BTC), Ethereum (ETH) and how low it can go before it rebounds.
Solana against the dollar
Source: Binance
SOL has lost 85% of its value since its all-time high in November. In the longer time frames, SOL is trading much below its 200-day moving average of $116. Its RSI currently stands at 41.4. If SOL was to fall below further, its support level should be at $30 - a long term trendline support.
Solana against Bitcoin
Source: Binance
SOL/BTC pair is currently trading at .0014, down from the April high of .003. The next support is forming at .0009, if we go by the long-term support trendline.
Solana against Ethereum
Source: Binance
SOL/ETH pair is currently trading at 0.022, almost half of the April high of 0.04. if the current downturn continues, SOL/ETH might possibly test support at 0.016, before it rebounds.
Even though Solana has been hit badly by the bears, it is poised for a rebound sooner or later, given the sheer number of projects it hosts and the people that support the project. Its upcoming developments and collaborations will surely lend it greater strength to recoup and set itself on a path to recovery. However, this is still dependent on macro recovery of global markets including Bitcoin. We predict a dollar based bottom in the range of $20-30 before SOL rebounds.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.