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The cryptocurrency market is experiencing a challenging phase, with Bitcoin (BTC) 
$83,460 facing persistent fluctuations that impact altcoins significantly. The prolonged negative sentiment, lasting nearly 100 days, has weakened investors’ appetite for risk in altcoins. Notably, Solana 
$122 has seen an unprecedented decline. This raises pressing questions about the current status of the market and the expectations for investors. Why is Solana falling?
What’s Behind Solana’s Decline?
Previously, we discussed the shift in the profile of new investors. Users, paying hefty commissions, aimed to profit from worthless, newly created tokens through the PUMP/RUG scheme. Millions of tokens, composed of random letters, flooded the market within weeks.
These tokens often lasted mere hours, with many disappearing before reaching significant market valuations due to rug pulls. Recently, an incident involving the President of Argentina led to substantial losses for investors on a massive scale.
The recent trends, fueled by the behavior of new investors and accelerated by the PUMP/DUMP narratives from 2017-2021, have caused negative reactions towards the Solana network due to evident fraud cases. The decline in Solana intensified when an individual attempted to launder money through meme coins on the network.
AVAX and Shiba Coin Insights
Investors have become cautious about engaging with meme coins on the Solana network. With connections to $1.46 billion worth of stolen assets, they face potential legal and financial risks. While the decline poses challenges for the Solana community, it may positively contribute to restoring liquidity in the overall altcoin market.
AVAX has struggled to maintain a positive trajectory and feels the weight of its double-digit annual inflation. The price is approaching a critical support level of $22.4, where a recovery, driven by improved market sentiment, is essential.
Shiba Coin, after achieving a 100% increase during the November elections, has since retraced to 57% below its peak. It has been steadily declining for 78 days, with the price potentially bottoming at $0.0000130 as the Fed begins to cut rates.
