Is Solana’s FUD era finally over?
- SOL declined by around 80% in November but has seen a rebound.
- Solana’s status showed that it had been online for over 90 days.
Solana [SOL] experienced a significant price drop influenced by various factors. Nevertheless, it appears to be bouncing back despite the ongoing regulatory uncertainty.
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In November 2022, Solana went through a significant period of price volatility, resulting in a substantial decline. Between 6 – 9 November, SOL experienced consecutive drops of approximately 80%.
The downward trend persisted until late December when a rebound was observed.
Before the decline, SOL had been trading above $30, but it hovered around $9 during its downtrend. As of this writing, it was trading at around $19.1, reflecting a decline of over 1%.
Interestingly, the Relative Strength Index (RSI) indicated that SOL was in a bull trend at press time. The RSI line sat above the neutral line, accompanied by the Moving Average Convergence Divergence (MACD) trending above zero, affirming the bullish nature of the trend.
However, it’s worth noting that before its rebound, SOL faced some apprehension due to its classification as a security by the SEC. This led to fear, uncertainty, and doubt (FUD) surrounding the asset.
Solana as security and platform stability
One of the contributing factors to the decline experienced by SOL towards the end of 2022 was the frequent occurrence of platform downtime. The persistent interruptions in its service have been a source of criticism for the platform.
However, upon examination of the press time status, the platform has been online for over 90 days. There had also not been any reported incidence in that period.
Furthermore, the upcoming launch of Firedancer on the Solana platform promises to improve transaction capabilities and uptime, addressing some concerns raised previously.
Also, despite the classification of SOL as a security and the subsequent fear, uncertainty, and doubt (FUD) surrounding it, it appears to be trending positively. The delisting on certain platforms has also not impeded its progress significantly.
How much are 1,10,100 SOLs worth today?
Price rise still expected
Recent data from CoinGlass indicated that the sentiment surrounding Solana has remained optimistic in the past few weeks. As of this writing, the weighted funding rate on CoinGlass was positive across various exchanges.
This positive funding rate suggested that there was still an expectation of a price increase, leading to a prevalent preference for long positions.