Solana (SOL) hits the ground and digs back in (-96% from the mound).

Game over for Solana?- After experiencing a flamboyant 2021 with an increase of several thousand percent, the year 2022 turns out to be disastrous. In fact, within a year, Solana is down 96%, and the bearish momentum looks set to continue. Is Solana paying for its proximity to the FTX platform? Let’s look at the situation for Solana (SOL).

Weekly Solana Analysis

As explained in the introduction, Solana (Sun) has a dark year and gives up more than 90% the site is most historic at 260 USDin November 2021. Listed approx $3 on the Binance platform, it is now evolving under 10 USD :

The price of Solana in relation to the dollar (1W)

The trend is clear bearish in weekly time units. In fact, the price has shown downward lows and highs since the change in momentum at the start of 2022. institutional bias (EMA 9/EMA 18) is also bearish since the start of the year, he has pushed back any comeback between EMAs. The price also develops below bearish trend line initiated below the local summit of Solana.

The weekly support located at $33 allowed several rebounds, but the sellers quickly regained control by bringing the price below this technical level. The sequel is no more glorious. that stand for 20 USD was pierced in a single candle, and the bracket for $14 was worked on, but it also gave way. The next strong weekly support is much lower, at 3.5 USD. If the buyers do not wake up, the price may well fall 65% additional.

The progress is bearishit will be necessary to wait to mark lows and rising highs to find colors on this asset.

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Solana falls below $10 on a daily basis, the massacre is not over?

Solana’s price shows a loss of more than 90%, but autumn may not be over. Let’s look at the interesting technical levels on a daily basis and the level to resume to avoid disaster Mentioned above:

Solana needs to break back above the resistance at $13.5.
Daily Solana course (1D)

The price is in the process of falling below the last low on November 22 at $11. If tonight’s close is confirmed, the sellers can take the price towards it 8 USDthereafter $6. These are a lot fragileand this is explained by the meteoric rise of Solana in 2021. Yes, when the price moves up too quickly, solid support cannot be created.

If buyers want to avoid another wave of declines, they will need to emerge very quickly and come back above resistance placed at $13.5 (green arrow). If this scenario is realized and the dynamics change on a daily basis, then it will be possible to review the price of solana around resistance at $31.

Momentum is encouraging, the November 9 low is holding for now. If the buyers show up and the RSI goes back above 45a bullish divergence could be set up. This could allow the price to breathe a little. Be careful, a bullish divergence does not mean that price will find one bullish momentumbut buyers and sellers could neutralize by creating one cleaned up.

Despite the drop, players continue to bet on the rise?

On it derivative markets, it looks like the actors aren’t letting up. Despite the staggering decline financing rate was recently positive :

According to the Santiment site, players continue to bet on the rise of Solana.
Graph showing Solana’s funding rate on Binance Source: Santiment

The financing rate makes it possible to maintain an equivalence between the price of derivatives and the price on the spot market (where you actually own the underlying asset). To put it simply, when the financing is positiveplayers bet on the increase. On the other hand, when the financing is negativethe actors are mostly there shorts. Use of Website Data Sanitationwe note that the actors were placed in long (buy) on December 27. So Solana’s fall took those actors a long time and it may not be over…

Developers continue to be optimistic about the Solana project?

A few weeks ago, ago Messari made one examinationand despite the fall, the developers appeared to want to continue work on the Solana project :

Most developers plan to resume work on the Solana project in November.
Most developers want to stay on Solana Source: Messari

we see it the majority of developers intend to continue work on the Solana project. Some seem to be attracted to other projects like Ethereum or Cosmos. If the price continues to fall, will the developers be forced to change their minds?

The price of Solana experiences a carnage in 2022, it drops more than 90% in a year. Buyers need to wake up quickly to avoid another wave of declines that could bring the price to $8, $6 or even $3.5. Despite the decline this year, the developers seem confident and want to continue working on the project. Hopefully 2023 will be more like 2021 than 2022 for Solana.

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