Daniel from Oakland

Signed up at Bet Panda IO 20 minutes ago.

» Try Bet Panda IO too
Do not show again

Considering the fact that Solana has lost nearly 49% of its value in the past seven days, even die-hard SOL traders fear having to run for the hills and take a hit. But with the Solana Network still aiming for the sky with very ambitious plans… could it actually be a blessing in disguise?

Will this cryptocurrency be able to rebound to previous highs? On the other hand, how low might its prices fall? The team at Crypto Lists will delve into these two crucial questions immediately below.

Underlying Causes of the Crash

It’s first wise to take a quick look at exactly why Solana has lost so much of its value since peaking at nearly $250 dollars in 2021. One factor involves the numerous network outages that occurred in recent months. Developers claim that these faults have been the result of resource exhaustion that led to a denial of service. Still, how would this be possible within a decentralized network? Interestingly enough, research has found that the top five data centers which support this crypto control nearly half of all nodes (1). This hardly represents decentralization and it has (rightfully) spooked some investors.

The other main issue that has come to light over the past few days is the relationship between Solana and FTX. It was originally reported that Binance was set to buy out this flagging crypto exchange. After backing out of the deal, FTX has been left in digital “limbo” and on the brink of collapse.

The problem here is that another trading house known as Alameda Research was closely tied to FTX operations. It just so happens that Alameda holds a massive amount of Solana. When CEO Sam Bankman-Fried decided to close Alameda, rumors began to circulate that its share of SOL tokens might need to be sold in order to raise much-needed liquidity. Investors were understandably afraid and once again, prices tumbled.

Rating: 9.33/10
Supply: 307,782,016 / 511,216,000
Release date: April 10, 2019

Description: Want to jump in on Solana while prices are low?

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

Keeping a Close Eye on Implied Volatility and Additional Liquidation

Now that we’ve laid out the groundwork for why we have been experiencing near-record lows in recent times, we need to take the notion of implied volatility (a prediction of short-term price turbulence) into account. At the time that this article was published, these levels had jumped up significantly. When we highlight that BTC implied volatility is hovering around 95%, it’s clear to understand why traders are remaining “on the fences”.

The other variable in terms prices involves whether or not Alameda Holdings is only the tip of the iceberg in terms of liquidating additional tokens. If this comes to pass, there’s no doubt that values will plummet even further. So, we’re left with an important question. Just how low can SOL go?

Finding a Solid Level of Support

Let’s begin by mentioning that not all investors are spooked. Some have cautiously entered into smaller positions in the hopes of turning short-term profits. This is far different when compared to those who might have held tokens since the halcyon days of 2021. The question of Solana reaching a level of support that presents an attractive buy opportunity is therefore a bit subjective. Having said this, many investors seem to be waiting to see if SOL recedes to $10 dollars. What makes this such a seemingly “magical” number?

We need to look at proportions to appreciate why such a situation might be attractive. It should be remembered that Solana experienced a bullish run in April 2022 from $82 dollars to $132 dollars before the subsequent Terra Luna collapse. In other words, even a small bullish run after reaching baseline support could once again cause a short- to medium-term uptick.

Clearing the Air

A final point to make involves forced liquidation. Although this has always been a somewhat scary concept, such moves tend to clear the air in terms of where an asset actually stands. While Solana is currently experiencing a great deal of turbulence, this altcoin is still built upon solid technical foundations and its developers are continuing to seek out partnerships. Purchasing NFTs via the Solana framework is a streamlined process and users pay minimal commissions. Even though this cryptocurency is currently in the digital doldrums, its fundamental principles do not seem to have changed. Simply stated, the smart move could very well be to watch and wait.

Of course, Crypto Lists will also be keeping a close eye on what can only be called an “interesting” situation at the moment. Be sure to check back with us on a regular basis to keep one step ahead of the latest SOL news and events.


1. https://www.validators.app/data-centers?locale=en&network=mainnet

by Our Certified Author
Solana Coin Newsflash
    Fresh Thursdays: try the brand new Crown Play with SOLFresh Thursdays: try the brand new Crown Play with SOL
    Thursday, 15 Feb 2024 10:25 am
    Act like a king on a new casino launched in January with a 500 USDT welcome bonus. That's right, why not check out our review of Crown Play (review), a site from the team over at Rabidi with almost 100 software developers and an amazing array of cryptos to deposit. One of the best things is USDT on Ethereum Tron, or Solana networks for maximum convenience and blazing speeds. When we deposited using USDT on Solana the funds arrived in mere minutes. Similarly, with SOL it was even faster! Amazing. Get your hands on some top bonuses and a top sportsbetting section by registering now on Crown Play...
    Read the full newsflash

    MetaWin adds Solana for casino depositsMetaWin adds Solana for casino deposits
    Friday, 2 Feb 2024 4:05 pm
    MetaWin (see review) confirms that Solana (SOL) is not accepted. They are giving away 400 SOL - worth over 40 000 USD - to 10 lucky winners. Sign-up now to grab a...
    Read the full newsflash

    Play on Payday, a new crypto casino with Solana withdrawalsPlay on Payday, a new crypto casino with Solana withdrawals
    Tuesday, 16 Jan 2024 9:34 am
    Payday loans don't have the best reputation, but we've got a new casino review that sounds similar but tastes a whole lot different. Launched in spring of last year and still finding its feet for the first few months of operation, in 2024, Payday Casino (learn more) delivers and then some. With loads of cryptos to choose from including niche ones like Stellar Lumens (XLM) and super speedy ones like Solana (SOL) you've got loads to play with. Withdrawals are timely too, processed and sent out within a day. Usually within an hour. With 1000 games coming thick and fast from some well known developers like Spinomenal and Tom Horn, you're in for one heck of a treat. Sign up to Payday and experience fun...
    Read the full newsflash

    SOL down 4.5%: time to play on a leading Solana casino?SOL down 4.5%: time to play on a leading Solana casino?
    Wednesday, 10 Jan 2024 12:42 pm
    When your favorite coin starts to go down in value, that can be a pretty good time to play with it compared to when it starts to rise and HODLing sets in. LTC Casino (see more) is among the very best Solana casinos we've ever reviewed on Crypto Lists and is a firm favorite among our readers. It's got 5 second signup without any KYC when you register, deposit, or withdraw. Amazing. Although there's no welcome bonus, there are tons of ways to win including special tournaments and super-fun crash games. And, high RTP slots are one of the specialities! What are you waiting for? Sign up now and see if you like LTC Casino's...
    Read the full newsflash

    Early Christmas for Solana fans: Top 4 crypto by market capEarly Christmas for Solana fans: Top 4 crypto by market cap
    Friday, 22 Dec 2023 7:28 pm
    In terms of raised market capitalization among major cryptocurrencies, there is a clear new winner among alt coins in December 2023. Solana (SOL) has gone past both XRP earlier this week and overtook BNB today to become the 4th biggest cryptocurrency in terms of market cap. In terms of daily transaction volume, Ether (ETH) is still more than 3x bigger and Bitcoin (BTC) almost 4 times bigger. But the gap has been narrowing lately and the Solana token is one of the big winners in the end of 2023 among the bigger cryptocurrencies. Among the slightly smaller ones, Near (NEAR) has gone from 1 USDT the 20th of October to 3.32 USDT when writing this. Another big winner the last month is Helium, going from 2.26 USDT one month ago to 7.22 USDT today. What...
    Read the full newsflash

New Casino Reviews
New Crypto Casinos
Best Crypto Casinos
Recent Crypto Sites
Recent Crypto Coins
  • Gorilla logo
  • Dynasty Wars logo
     Dynasty Wars
  • Kaspa logo
  • IOTA logo
Keep up to date with

Our Newsletter

Sign up to our newsletter to get the
latest crypto news, new casinos,
bonus offers and other exciting
* indicates required
Copyright © 2019-2022, by Crypto Lists Ltd (CryptoLists.com). Company name: Crypto Lists Limited. Address: 5 Upper Montagu Street, LONDON W1H 2AG, England.
Jump to top