The Solana market has pulled back a bit during the trading session on Thursday as we continue to see the market drift lower overall. The Solana market seems to be attracted to the $30 level, but when you look at support and resistance on longer-term charts, you will notice that the $50 level has been resistance, just as the $20 level had previously been important underneath.
The Solana market has taken a major nosedive with the rest of the crypto markets, and therefore I think you need to look to the bigger coins in order to determine where this market goes. At this point, most institutional money does not care about these other smaller projects, whether they are faster or slower than Ethereum is completely irrelevant. Yes, Solana is a major player in the improvement of crypto, but at the end of the day, it’s not much in the way of being investable currently.
If we do continue to go lower, I would anticipate that the $20 level should be worth paying close attention to, because if we break down below their Solana will fall apart. At that point, I would anticipate that the market will bang around and very low numbers and kill time until the rest of crypto can advance.
If that were to be the case, pay close attention to the Solana ecosystem, and all of the news coming out of it. After all, this is a market that needs some type of good news, plus we are in a situation where a lot of crypto markets may disappear permanently. It’s going to come down to whether or not a network is viable from a usage case standpoint at this point. The years of easy and cheap money flowing into the market are over with now, therefore crypto is going to have to stand on its own. It’s hard to imagine that crypto is suddenly going to take off to the upside without a certain amount of good news and real-life use. Quite frankly, most crypto is a solution looking for a problem, and we are about to see 90% of networks and coins disappear. This does not necessarily mean that Solana is in trouble, but a lot of crypto is. As long as that is going to be the case, the best thing that can happen to Solana is getting rid of some of the dead weight in the crypto world.
