Why Is Solana Crawling Despite Numerous Network Developments?
The Solana (SOL) community had a lot to talk about last week following the launch of several new features on the ecosystem. These ecosystem tweaks occurred on Solana-based protocols and on the network itself. While you would expect this to have influenced the price dynamics of the SOL token positively, the cryptocurrency hasn’t had much luck in recent times. At press time, the smart contract-blockchain cryptocurrency traded weakly near the $40.00 mark, with CoinMarketCap data showing a 24-hour decline of 5.95%. This is despite a 101% surge in volume for Solana.
One notable development in the Solana ecosystem is the traffic recorded by Automated Market Makers (AMMs), a critical liquidity instrument for SOL, on the network. Solana-based protocols Raydium and Orca contributed the most traffic to these AMMs, with Raydium delivering 3x the volume of Orca.
Another Solana-Linked Hack
Despite all the advancements and improvements happening in the network, Solana continues to suffer recurring hack attacks, with the most recent occurring on August 3. This attack saw the hackers make away with over $6 million from 8,000 Solana-tied wallets. Blockchain developers said the hack resulted from the oversight of Solana-based storage provider Slope Wallet. Despite not being directly responsible for the exploit, the Solana team has shown a strong commitment to investigating the case.
What Is SOL Doing?
In this clear-cut TradingView chart, we see SOL maintaining a steady upward trajectory, albeit not in tandem with other top gainers in the industry. At the same time, however, the ninth-largest cryptocurrency has consistently recorded lower peaks over the last month, highlighting a near-term bearish bias. That said, a vacillating momentum could ensue over the coming days, with momentum thinning until the price settles on the $41.00 line, where a breakout occurs. Given the recovery air in the broader market, I’m leaning towards a bullish breakout if the sideways momentum does emerge.
In the shorter term, the 4-hour stochastic oscillator indicates that SOL is out of overheated market conditions and could post a mild rebound in the coming hours, supporting the trading bias outlined. On the largest timeframe (daily chart), it’s a similar story, with the steady upward pattern even more visible. The cryptocurrency currently trades near its daily base at $39.90 and is primed for a jump towards $43.00. Nonetheless, a Solana rebound would be nothing short of fiery, given all the pent-up and missed rallies.
SOL Statistics Data
SOL Current Price: $39.90
SOL Market Cap: $13.84B
SOL Circulating Supply: 348.4M
SOL Total Supply: 511.6M
SOL Market Ranking: #9
This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.