Amid an ongoing market crash, Solana SOL has dropped 21%, making it one of the top ten worst performers among crypto. Solana fell 21%, from $140 to $110 on August 5, a staggering $30 plunge in 24 hours. The currency is the worst performer amongst CoinMarketCap’s top 10 cryptocurrencies by market cap.
At press time, SOL is back up to $132.46, but the plunge this morning was concerning for investors. It caps an overall 28% downturn for SOL in the past week. Despite this turmoil, analysts suggest that this is just a temporary drop for the asset. The Solana daily chart’s RSI is now at an oversold level of 27%, values last seen on April 13. This reflects a similar market environment to that period, in which SOL quickly bounced back.
While this may seem like positive news, a present-day sign is still necessary to raise hopes for a reversal. With Solana SOL getting a quick rebound to $130 again, the asset will need to test $140 before experiencing a true rebound back up to previous levels of $160. Solana had been one of the standout performers of 2024 thus far before the recent market downturn. The ongoing stock market crash in the US isn’t the most positive environment for SOL to be in now. If a market fix doesn’t occur soon, the token may linger on this level longer, or even sink further.
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Solana investors are holding on to subtle signs of a potential reversal, however, they remain incredibly active on the market. The trading volume of the token is up $294.56 in 24 hours, with millions in SOL up for sale. It is important for investors to not panic sell, otherwise, it is possible that the asset may sink in demand and hence price further.
Solana SOL achieved a milestone in July by beating Ethereum in monthly DEX trading volume. SOL recorded $55.876 billion. Fast transactions and low fees have attracted traders to SOL, therefore, the asset must rebound soon to keep these traders interested.