Solana Struggles: Staker Exodus, Network woes threaten $100 support

Solana, one of the most popular cryptocurrencies in the market, is struggling to maintain its bullish momentum.

After crossing the 150-dollar mark, the crypto entered a correction phase. Currently, SOL is trading at 129.54 dollars, a 4.41% hike in the past 24 hours. However, the crypto has lost 12.53% of its value in the past week alone.

As per the latest Solana forecast, the coin can end the year at 119 dollars. Coincidentally, SOL did test the 120-dollar mark for a bit on May 1. The dip was triggered by stakers who withdrew 1.9 billion dollars worth of staking contracts amid network congestion issues.

The development caused Solana to hit a 14-day low of 118.72 dollars. The coin lost 41% value in April alone; however, data trends hint that the coin is likely to experience an even more downward spiral.

On April 15, investors held 378.5 million SOL coins in staking contracts. In the following two weeks, the figure dropped to 362.6 million SOLs. The action highlights that stakers have withdrawn 16 million+ SOL from contracts from April 15 to May 1. However, the experts are more concerned about Solana’s network congestion issues.

On April 30, the transaction failure rate on Solana remained worryingly high (60.5%). Moreover, the congestion issues have added negative implications for new projects. The ongoing sluggishness contradicts Solana’s core value proposition of efficiency and high transaction speed.

With the overall crypto market struggling, Solana inventors and ode validators can react by unstaking more SOL in the coming weeks. Thus, the coin can even test the 100-dollar support level. The assessment is supported by the Bollinger bands and Relative strength index as well.

The metric shows a pessimistic outlook for Solana in May 2024. Without any significant support around the current price, Solana could potentially test new during the month.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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