X

Sarah from Fort Worth

Signed up at Juice Bet Casino 41 minutes ago.

» Try Juice Bet Casino 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: 9.4/10
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.

Sources:

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

by Our Certified Author
Solana Coin Newsflash
    Sample Solana's speed on the new Juice Bet casino today!Sample Solana's speed on the new Juice Bet casino today!
    Wednesday, 19 Jun 2024 11:35 am
    Say hello to another fresh casino (see all) from the world of crypto iGaming. This time it's time for something that's fresh in more ways than one since it's the one and only Juice Bet (review) - a site that combines thousands of games with one heck of a sports betting section featuring loads of US sports sitting pretty alongside soccer and more. You can even wager on political events too. What stands out to us is the range of crypto deposit and withdrawal options that include meme coins like Shiba Inu, layer-2 powerhouses like Solana and all alongside the big names like Bitcoin and Tether, the two coins here that have the fastest withdrawal speed...
    Read the full newsflash


    Betsolino's new casino adds Dai, Tron & MifinityBetsolino's new casino adds Dai, Tron & Mifinity
    Friday, 14 Jun 2024 1:54 pm
    One of the newest crypto casinos from May 2024 is adding even more deposit methods. Now, you can get started on Betsolino (see review)a> even with Dai, USDT (Tron) or the payment processor MiFinity. All new players can enjoy up to 5000 USDT in welcome bonus and a super quick sign-up process. We suggest that you visit Betsolino today and find a genero...
    Read the full newsflash


    Solana regins supreme on Kingamo's royal casinoSolana regins supreme on Kingamo's royal casino
    Friday, 7 Jun 2024 9:00 am
    Want to be a royal hero? Perhaps you can on Kingamo (review) where you can claim a crown as the king of the crypto casino players. Fancy your chances? There are plenty of ways to prove it. Not only do you have standard slots to wager on, Kingamo Casino brings an array of attractive promos to its players. The fun starts with a 1000 USDT welcome bonus and you’ll find a choice of ongoing rewards, including up to 20% daily cashback. Cashback fit for a future king, if you ask me! And did we mention Solana deposits? You can use that awesome purple-themed coin right here. Visit the website now and take...
    Read the full 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

New Casino Reviews
New Crypto Casinos
Best Crypto Casinos
Recent Crypto Sites
Recent Crypto Coins
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
exclusives.
* indicates required
CryptoLists.com
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