- Solana (ground) fell at its lowest price since October, trading below $ 153
- The decline follows the scandal of balance tokens involving Argentinian president Javier Milei
- Cool the feeling of the same thing affects the soil despite several asset managers who apply for ETF Solana
- Binance would sell a lot, with $ 2 billion worthy of unlocking
- Technical indicators show lower signals with Breaking Crucial Support at $ 158
Solana (ground) fell at its lowest price since mid-October. The token is now negotiated below $ 153, marking a sharp drop of 9% in the last 24 hours and a 25% drop in the past two weeks, according to Coingecko data.
The drop in prices occurs while cryptocurrency is faced with several challenges, including its connection to the scandal of the scale tokens and a decrease in interest in the parts even which had previously stimulated the Solana network.
The balanced token, Which was built on Solana’s blockchain, lost around 90% of its value in a few hours earlier this month. This collapse triggered accusations of fraud and calls for the dismissal of the Argentinian president Javier Milei, who had promoted the token on the X social media platform. The token was designed to help small businesses in Argentina.
Soil price
President Milei then deleted his post on the scale and denied knowing the creation of the play. He said he thought it was a business that sought to finance private companies. The repercussions of this scandal have spread to affect the price of Solana.
At the same time, the market for coins once chopped has cooled. Earlier this year, pieces even as those linked to Donald Trump saw enormous interest, but this excitement has faded. While there was buzz on weekends About rapper Kanye West Perhaps launching its own room, the overall media threshing has decreased.
Ethereum outperforming
Mark Connors, investment director at Bitcoin Investment Advisory Dimensions of Bitcoin Investment Advisory, based in New York, said decipher tHat Token Launchpad Pump.fun could not “wear the longer day for faster blockchain, leaving investors promoting integrity for potential profit as the uncertainty of the market sets up”.
Connors also noted that “the fallout from the launch and confusion of the balance on which has online Kanye (name, image and resemblance) accelerated a feeling of feeling for the L1 based on the memes.” He added that Ethereum has outperformed Solana recently, falling 18% compared to the 38% drop in Solana.
Technical analysis
Technical analysis shows more problems to come for Solana. The token broken down a level of crucial support at $ 158 after a brief period of consolidation. The Gaussian canal has become a lowering while the price fell sharply below the channel. This suggests that the token needs a major recovery to come back to an upward trend.
The monetary flow of Chaikin (CMF), an indicator that measures the pressure of purchase and sale, fell below zero after having stayed at average levels since December. This indicates the increase in the lower force that could push the price to the local support area below $ 140.
The reports suggest that Binance, one of the greatest exchanges of cryptocurrency, sold soil strongly. This sales pressure comes at a time when $ 2 billion in ground are about to be unlocked, which could flood the market with more token.
Adding to these concerns, Wintermute, a main supplier of liquidity, would have withdrawn $ 38 million in Binance soil in the last hours. Some market observers believe that this could be a preparation to sell the token at higher prices, creating even more sales pressure and possibly causing the sale of panic.
If Solana Do not hold the price level of $ 150, the experts expect the lower action to repel the price to the support zone between $ 138 and $ 139.
Solana Etf?
Despite these challenges, there are still positive news for Solana. Several main asset managers have requested grant funds (ETF) depending on the Solana cash price. Franklin Templeton recently joined Graycale, Bitwise, Canary, 21Shares and Vaneck to request the approval of the Securities and Exchange Commission (SEC) for the funds based in Solana.
Bloomberg’s main analyst Eric Balchunas estimated a 70% probability that the SEC approves these ETFs. Such approval could potentially provide new institutional investments in Solana.
Global activity On the Solara network has also decreased. Several chain metrics show a decrease in use, as well as the decrease in decentralized exchange activity (DEX) for the fifth consecutive week. This drop in network use can be both a cause and an effect of lower price.