Reshab AgarwalSolana has been having a tough time lately. The price has been correcting ever since November 2021, and it hit $35 a few days back. However, we saw a quick jump as well after Bitcoin rallied, but it didn’t last long as bulls were unable to clear the $32k resistance. However, during this period, as Solana rallies 25% in a few days, investors are hopeful about the long-term success of the coin.
Solana’s long term price action
Brett Stifling, director of GetInvested, tweeted about the recent gains made by Solana. Brett says that he wouldn’t get too excited before a long-term trend changes or some major catalyst happens in the space. Until then, all these jumps are just bulls trying to break out but ultimately, a lot more longs get liquidated.
It would be encouraging to see Solana $SOL keep these gains, but I wouldn’t get too excited about a recovery until we see some real signs of a long term trend change or a major upcoming catalyst. My thoughts via @ForbesCrypto @GerberKawasaki #GetInvestedhttps://t.co/9N0mOM1KCU
— Brett Sifling, CFP® (@BsiflingTrades) June 7, 2022
The all-time high of Solana was $260 according to coinmarketcap, and now it is at $39. So, it is 85% down from its ATH, which shows how the bear market affects even the blue-chip alts. It will be essential to see how long it takes for alts to regain ground and reach their new ATH after BTC takes off.
A big problem with Solana
Image Source: Business Insider
Those who have followed Solana’s rally in 2021 must find the current price quite attractive for entry. However, there is a big problem with Solana, which could even mark its end. Even I am skeptical due to this and haven’t bought the coin even at this price. So, what is it? The frequent outages that Solana faces. Its network collapses, and blockchain failures significantly impacted its reputation and have accelerated its price decline. It is quite probable that if Solana hadn’t faced network outages, its price would be much higher now.
Solana is fast and cheap, and these are very important to have, but network outages are something no one expects from crypto. If Solana doesn’t work to fix these problems and continue in the future, I don’t see a very bright future for the token. It might not cease to exist, but its price might never do as well as it did in 2021.
What are your thoughts as Solana rallies 25% but falls back soon after? And do you think Solana will be able to survive if they don’t fix the network outage problems? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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