February 22, 2024

May 2022 Price Prediction for Solana: A Troubling Pattern Emerges

The price of Solana started with a steady stand Monday despite the fact that the outage the network had over the weekend continues. The network’s token, SOL, is currently selling at about $90.50, which amounts to some 11% over April’s lowest selling point.

The Solana network’s market cap is still well above $30 billion, which places it as one of the largest crypto assets in the world.

The Solana Outage, Yet Again

The price of Solana performed very well over the weekend while investors had a reaction to the network’s most recent outage. In the course of the weekend, the network was out of productive service for some seven hours due to an outage and the number of bots on the system rose sporadically.

Going by available reports, it was said that those bots seized the opportunity to try minting NFTs on the network.

The particular NFT under attack was, at the time, that of Candy Machine. The rapidly increasing number of those bots launching the attack caused the fall of the mainnet and took it out of order till it crashed since nodes began to collapse beneath the heavyweight.

In the course of the attack, the network’s traffic climbed to more than four million transactions carried out per second. Normally, the Solana network can barely handle up to 3,000 transactions a second.

There had been outages on the Solana network in the past. In January this year, there was an outage for some 18 hours. In 2021, the network had multiple outages that led to high-level disruptions in its operations. The increasing network outages are impacting negatively on Solana for a couple of months now.

For instance, the Total Value Locked of the network has fallen by some 24% in a month.

The Good Part

Nevertheless, there are some positive sides to the story. Solana gained central attention in the month of April as there is a continuous increase in the price of Stepn GMT. It is currently worth more than $2 billion, as it became the move-to-earn crypto asset with the largest value in the world. With that, Solana has begun to take a position as one of the major early players in Web 3.0.

The price of the Solana native token, SOL, has been trading in quite bearish territory for some weeks now. As things stand, the price has gone from the high point it achieved in April at $144 and moved under. The price is now fast moving towards the $76.72 support level, where there has been a serious struggle to go under this year.

SOL has equally fallen under the 25-day and the 50-day daily moving average as the Moving Average Convergence Divergence has gone under the level of neutrality.

On a closer look, one would observe that the price of the coin has formed a head and shoulder pattern. There is, hence, speculation that the token could experience a significant bearish breakout in the month of May. That speculation would become invalid if the token’s price falls under $76.72.

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