Solana’s SOL Token Drops 79% YTD
Tokens affected by network outage and overall bearish market
$36 to SOL . is faced with resistance
Solana is an open-source blockchain project that aims to support decentralized applications. The network uses a hybrid consensus model consisting of proof-of-history and proof-of-stake algorithms.
Founded in 2017 by Anatoly Yakovenko and Greg Fitzgerald, Solana is keen to make its transactions scalable and low-cost. Its developers cited slow transactions in the PoW network and explained how its timestamp technology could address the shortcomings.
Solana’s popularity soared in 2021 when it is poised to become an ‘Ethereum killer’. However, the blockchain now appears to be a shadow of itself. In addition to the crypto crash in the first half of 2022, Solana has suffered several network outages. The challenges have shaken its belief in the value of the community going downhill.
SOL falls 79% year-over-year
According to the year-to-date price outlook, the solana is down 79% since trading at $173. The selloff has also seen the token tank 86% since peaking at $258 in 2021 information From CoinMarketCap. The market capitalization of SOL then decreased from $77 billion to $12 billion.
Solana’s net worth locked is currently $2.61 billion at #5 according to Ethereum, BSC, Tron and Avalanche. defy llama, Ethereum and BSC hold $47.43 billion and $6.23 billion in TVL, while Tron and Avalanche hold $5.3 billion and $2.7 billion, respectively.
SOL faced resistance at $36 (4-hours chart)
Looking at the 4-hours chart of the above, SOL has found resistance at $36. However, the coin is showing some bullish momentum above $32. The MACD indicator is also bullish. The latest data from CoinMarketCap shows that SOL is currently trading at $35.79, after a 5.81% increase on the previous day and a $2.93% jump over the past week.
Although Solana is losing popularity, traders can still profit from short-term gains. Recent network outages and overall bearish sentiment are some of the factors affecting SOL price. A rise above the $35 resistance could bring some bullish momentum, and $42 will be the next resistance to watch.