Solana’s recent 5% decline amidst FUD news related to FTX has put $125 million worth of positions at risk. Despite this, the crypto has shown a quick recovery ability, posing a significant risk in short positions.
Solana (SOL) Confuses Investors with Various Statistics
In the past 30 days, SOL price has seen moments of decline and quick recovery. On April 19, Solana experienced a 5% drop just before the Bitcoin halving on April 20, failing to rise to $157. Similarly, if SOL increases by 5% to reach $157 again, it will lead to a liquidation of $125 million in short positions.
Market Sentiment and Ongoing Competition with Ethereum
Just a few days before Solana’s drop on May 7, crypto phenomenon CryptoAce suggested to his followers that Solana’s price was in a resistance zone and could experience a drop towards the $142.50 level. Changes in overall market sentiment were observed as the Fear and Greed Index score dropped to 54 points in the last 24 hours. However, recent findings in the ongoing competition between Solana and Ethereum could also have affected its short-term price. On May 8, there was a debate about whether Solana’s network could surpass Ethereum’s in terms of transaction fees. This debate could be a positive news indicator needed for a price increase in Solana.
Conclusion
Despite the recent 5% drop, Solana has shown resilience and a quick recovery ability. The ongoing competition with Ethereum and market sentiment could have significant impacts on its short-term price. As always, investors are advised to conduct their own research before making any investment decisions.
