Solana’s recent recovery faces obstacles as the cryptocurrency struggles to regain momentum, currently hovering around $145. Despite previous positive trends, the recent shift in Solana ETF flows has turned negative for the first time since their introduction, with a recorded outflow of $8.2 million.
Key Insights:
- Solana’s total value locked (TVL) has plummeted by 20% in November, accompanied by a 16% fall in network fees, signaling diminished demand.
- The current bear flag pattern formed on Solana’s chart suggests a possible deeper price correction, potentially down to $100.
Weak On-chain Activity
According to reports, institutional interest in Solana wanes as active addresses decrease by 6% and network fees drop over the past week. This trend has resulted in a 20% reduction in Solana’s TVL, falling from $13.23 billion in September to $9.1 billion.
30-day performance of major blockchains
Source: Nansen
Jito’s Performance
Jito, a notable platform within the Solana ecosystem, has experienced a 33% decline in its deposits over the last month. Other platforms such as Jupiter and Raydium have also reported significant losses.
Uncertainty from Upbit Hack
Recently, the Upbit exchange faced a $36 million loss from a hack, creating further uncertainty within the Solana market. Upbit’s suspension of SOL deposits and withdrawals limits liquidity, potentially leading to increased volatility.
馃毃 ALERT: Upbit suspends deposits and withdrawals after $38.5M abnormal outflow on Solana network, reporting the assets were transferred to unknown wallet on Nov 27.
Despite the security breach, SOL’s price showed some resilience, rising 3% to $143. However, this gain is faced with pressures that may hinder recovery toward the $150 mark.
Bear Flag Pattern Dynamics
The bear flag pattern observed on Solana suggests that a dip below the $140 level could trigger a significant drop in price, with potential losses reaching 30% if the price targets the forecasted level of $99.
SOL/USD six-hour chart
Source: Cointelegraph/ TradingView
Conclusion
This article does not offer investment advice. All trading involves risk, and readers are encouraged to perform their own research before making any decisions.
