The Solana price has been on a bumpy ride for the past few days. The SOL token has declined nearly 14% in the past seven days. It has been among the poor performers in the crypto market alongside Polkadot, Terra, Algorand, Vechain, among others.
SOL has a total market capitalization of $42 billion. It ranks as the 7th largest cryptocurrency in the world, sandwiched between XRP and Polkadot. The total volume of the SOL token traded in the last 24 hours has jumped almost 48% to $5 billion.
Earlier this month, Solana’s total market capitalization was hovering over the $62 billion mark. Its price has jumped more than 7,000% this year as superfans billed it as Ethereum’s killer. The digital asset was among the best-performing coins a few weeks ago before taking a deep nosedive.
Analysts have linked Solana’s tragic fall to its blockchain failure to process transactions. Solana’s blockchain is billed as the world’s fastest blockchain network. Its failure to process transactions disrupted the buy and sell ability of the crypto. People behind the blockchain blamed something called ‘resource exhaustion’.
The overall crypto sell-off has also played a major role in the Solana price decline. According to data by CoinMarketCap, the global crypto market capitalization has been hovering below the $2 trillion level. Bitcoin’s failure to rebound has dampened the crypto market sentiment.
The daily chart shows that the Solana price has been under intense pressure. At the time of writing, it was trading 6.48% higher at $141.292. The coin has managed to move above the 50-day and 200-day moving average, which is usually a bullish indicator. Its RSI has moved slightly higher and is steady at 51.
Therefore, the SOL price is likely to face a minor retracement before bouncing back. However, a move below the key support at $100 will invalidate this view.