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Solana (SOL/USD) has slipped down the cryptocurrency ranking in terms of market cap as the value of its native token SOL plummets.
As of writing, Solana is down another 10.5% in the past 24 hours, and more than 18% in the red this past week.
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SOL price plummeting on FUD
On-chain data platform Santiment has highlighted that Solana’s price has declined more than 73% since 5 November 2022. SOL traded above $38 in early November, but has declined to lows of $10, more than 96% down from its all-time high of $260 reached in November 2021.
In terms of outlook for SOL, the current support level was established in February 2021, when SOL retested prices just under $10 before rebounding higher amid a broader bull market rally. But in prevailing market conditions, it looks likely SOL/USD will break lower.
Over the past several weeks, Solana’s price has seen a sharp drop that has occurred amid negative sentiment around the cryptocurrency. Most of it is arguably related to the collapse of cryptocurrency exchange FTX.
Indeed, FTX-related FUD is behind SOL’s fast descent from among the top 10 cryptocurrencies by market cap – it’s currently 19th on CoinGecko with $3.66 billion in market cap. According to Santiment, the scenario is similar for other FTX and Alameda linked crypto assets, including REN (REN) and Synthetix Network (SNX).
Data shows shorts have been overly excited about SOL. And with FTX’s downfall weighing heavily on Solana, there’s a decline in developer activity, TVL has shrunk nearly 98% and trading volume has hit yearly lows. As Ben Armstrong aka Bitboy Crypto points out, Solana has lost all the momentum it had pre-FTX implosion.
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