Crypto: Here’s why Solana is falling by over 10%!

On August 1st, 2024, the price of Solana (SOL) dropped by more than 10%! Raising concerns among investors and crypto market watchers. Several factors can explain this significant decrease.

Crypto: Solana drops by more than 10%! Why?

Solana is experiencing a significant drop of more than 10% and is currently trading around $150. Here are the probable causes:

• First, the centralization of Solana. Although Solana is known for its speed and efficiency, it has often been criticized for its high level of centralization. This centralization can make the crypto network vulnerable to attacks or outages! Which can affect investor confidence.

• Next, a decrease in the use of decentralized applications. DApps are essential for the Solana ecosystem as they attract crypto users and increase activity on the network. A drop in their usage may indicate a lack of interest or trust in the network. Which can lead to a decrease in the price of SOL.

• Furthermore, the interest of derivatives traders in Solana seems to be waning. Derivative products, such as futures and options, are often used by traders to speculate on price movements. A decrease in interest in these products may indicate that crypto traders anticipate a continuous drop in the price of Solana.

• Finally, the rejection of the Solana price multiple times around the $190 mark. SOL has attempted to break this resistance multiple times but has failed! Which led to a contraction of the Bollinger Bands and a drop in price below the average levels.

A drop that could last?

The drop in Solana could continue if concerns about centralization and decreasing DApp usage persist. However, technical improvements and renewed interest from investors could reverse this trend. Forecasts remain uncertain, and crypto investors should closely monitor future developments.

This more than 10% drop in the price of Solana is a combination of several factors. Notably, concerns about centralization, a decrease in DApp usage, declining interest from derivatives traders, and technical resistance levels. These elements have contributed to a loss of confidence among crypto investors, leading to a significant drop in the price of SOL.