SOL Dips Another 10% Amid Negative Sentiment: What’s The Outlook For Solana?

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• Solana price has retreated to lows of $10 and looks primed for further declines.
• SOL is down more than 73% since early November following the FTX implosion.
• Fear, uncertainty, and doubt (FUD) have seen Solana lose most of its developers, and trading volume is very low.

Solana (SOL/USD) has slipped down the cryptocurrency ranking in terms of market cap as the value of its native token SOL plummets.

As of writing, Solana is down another 10.5% in the past 24 hours, and more than 18% in the red this past week.
 

SOL price plummeting on FUD

On-chain data platform Santiment has highlighted that Solana’s price has declined more than 73% since 5 November 2022. SOL traded above $38 in early November but has declined to lows of $10, more than 96% down from its all-time high of $260 reached in November 2021. 

In terms of the outlook for SOL, the current support level was established in February 2021, when SOL retested prices just under $10 before rebounding higher amid a broader bull market rally. But in prevailing market conditions, it looks likely SOL/USD will break lower.

📉 #Solana is now down 73% in the past 8 weeks. The #FUD is strong toward the once thriving asset, but there appears to be some pretty good justification with development activity coming to a halt. Read our take on what metrics are pointing to for $SOL. 👀 https://t.co/P7AnKYfKYN

— Santiment (@santimentfeed) December 28, 2022

Over the past several weeks, Solana’s price has seen a sharp drop that has occurred amid negative sentiment around the cryptocurrency. Most of it is arguably related to the collapse of the cryptocurrency exchange FTX.

Indeed, FTX-related FUD is behind SOL’s fast descent from among the top 10 cryptocurrencies by market cap – it’s currently 19^th on CoinGecko with $3.66 billion in market cap. According to Santiment, the scenario is similar for other FTX and Alameda-linked crypto assets, including REN (REN) and Synthetix Network (SNX).

Data shows shorts have been overly excited about SOL. And with FTX’s downfall weighing heavily on Solana, there’s a decline in developer activity, TVL has shrunk nearly 98% and trading volume has hit yearly lows. As Ben Armstrong aka Bitboy Crypto points out, Solana has lost all the momentum it had pre-FTX implosion.

Cryptos down from all time high:

Bitcoin: -75.5%
Ethereum: -75%
BNB: -64%
Solana: -95%

A coin being down 90%+ is not a death sentence. However, Solana has also lost a whopping 90% of its developers. And 100% of its momentum.

— Ben Armstrong (@Bitboy_Crypto) December 24, 2022

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