Solana faced the wrath of the FTX and Alameda-induced crash that sent leading cryptos tumbling to new lows. The FTX fiasco made the markets bleed porously and SOL was the hardest hit after it crashed 55% in two days. SOL fell from $38 to its current level of $11 in two weeks shedding all profits it generated last year.
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The crypto fell after news broke out that Alameda might dump $1.2 billion worth of SOL tokens to avoid insolvency. The damage done to SOL seems irreparable in the ongoing bear markets as the crypto is failing to attract buying sentiments despite being at a lucrative price.
Here’s Why Solana Could Crash Further
Solana is on a downward spiral this month and despite falling 62% in 14 days, it is yet to bottom out. Investors are staying away from the crypto in fear of another crash that could send its price nosedive further.
SOL’s trading volume plummeted 25% on Tuesday indicating that investors are staying away from the crypto. Its market cap is at $4 billion and another round of negative trading can push it toward the $3 billion mark.
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The short-term prospects for SOL look weak and the crypto has bleak chances of shooting up in price again. It is unlikely that SOL will breach the $30 mark this year due to the bearish market conditions. The crypto needs to jump nearly 250% to reach its previous level of $30 which is unlikely due to global macroeconomic factors.
SOL Might Crash to $3: Predict Analyst
Crypto analyst Altcoin Sherpa took to Twitter predicting that SOL might crash to $3 levels in the coming weeks. SOL is currently trading at $11.32 and a fall to $3 means the crypto would shed another 75% from the present levels.
“SOL: If these current areas fall, $3 is the next significant area up IMO. Long term I think that FTX/SBF getting destroyed is probably a net good for the ecosystem but short term wise, this is still pretty disastrous. Solana,” he predicted.
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At press time, Solana was trading at $11.33 and is down 4.8% in the 24 hours day trade. It is also down 95.6% from its all-time high of $259.96, which it reached in November 2021.