On-Chain Data Indicates Further Struggles For Solana, 25% Fall In SOL Price

On-Chain Data Indicates Further Struggles For Solana, 25% Fall In SOL Price

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Struggles for the Solana blockchain platform grew massively following the collapse of FTX. The platform’s native token SOL price has tumbled 73% in the past 8 weeks due to selloffs by FTX’s sister firm Alameda Research and investors. NFT projects and validators are moving to other blockchains. Amid the rising FUD, here’s what on-chain data indicates about Solana and SOL.

Solana Loses Shine Amid Rising FUD

On-chain analytics platform Santiment in a tweet on December 28 said the FUD surrounding Solana continues to rise on Crypto Twitter in recent days. Solana’s relation to FTX and Alameda has severely impacted its reputation in the crypto market. It resulted in SOL token price falling 73% since November 5.

According to on-chain data, Binance’s funding rate turned positive on December 27 and traders were planning to long the heavily retracing asset SOL. However, the SOL price fell over 10% in just a few hours due to massive liquidations. The SOL price made a low of $9.91 today as expected by some crypto analysts.

On-Chain Data Indicates Further Struggles For Solana, 25% Fall In SOL Price

Solana – Binance Funding Rate. Source: Santiment

The bear market has affected Solana massively, as it saw several blockchain halts, exploits, and developer activity ceases. Recently, DeGods and y00ts, top NFT projects on Solana, announced plans to shift to Ethereum and Polygon, respectively. According to DappRadar, DeGods and y00ts are the top 2 NFT collections on Solana blockchain.

Moreover, the TVL on Solana has dropped from $10 billion to $210 million in just a year, as per DeFiLlama. Santiment data confirms that the developer activity has also dropped significantly.

On-Chain Data Indicates Further Struggles For Solana, 25% Fall In SOL Price

Solana Development Activity. Source: Santiment

SOL Price Risks More Fall

Solana (SOL) price is currently trading at $9.97, down 10% in the last 24 hours and 18% in a week. The 24-hour low and high are $9.91 and $11.21, respectively.

The 167% increase in trading volume amid the SOL price fall in the last 24 hours indicates a decline in sentiment. Technical indicators paint a more bearish trend for SOL price and predict a fall to $8.20. Moreover, if the SOL price break above the $10.50 resistance level, the rally may not sustain for long periods.

Also Read: Binance Suspends Terra Classic (LUNC) Burn Mechanism

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