Solana‘s sudden price drop is directly related to the crash in the Japanese market. The Nikkei 225 index fell by 7.1% following the Bank of Japan’s interest rate hike. This caused a massive sell-off in the cryptocurrency market, resulting in a total loss of $500 billion, marking the largest loss in the past year.
Solana’s DEX Performance
Despite the overall market decline, Solana’s decentralized exchange (DEX) performance remains strong. In July, 30% of the crypto DEX volume was conducted through protocols on the Solana network. This percentage surpassed Ethereum’s 28.12% volume. In the same month, Solana’s DeFi ecosystem achieved a transaction volume of $56.84 billion, exceeding Ethereum’s $53.867 billion.
Solana (SOL) is currently trading at 120.70, experiencing a 15.76% drop in the last 24 hours and a 37.2% drop in the past week. If the price falls below the 110 level, it could retreat to the 107-dollar support level. Conversely, if the price rises above the 135-dollar level, it could reach the 164-dollar resistance level.
What Lies Ahead?
Solana’s future will be shaped by developments in Japan and other global markets. Particularly, the launch of Solana ETFs in the US could increase investor interest and positively impact the price. However, given market uncertainties and volatility, investors need to be cautious.
Bitcoin (BTC) fell by more than 10%, dropping to 49,000 dollars but later recovered and was trading at 52,470 at the time of writing. The total value of the cryptocurrency market decreased by 13% to 1.87 trillion dollars. Trading volume, however, increased by 119.72% to 142.44 billion dollars. This situation once again highlights how volatile and unpredictable the market can be.
Solana’s price drop is closely related to fluctuations in Japanese markets and global economic conditions. However, Solana’s strong DEX performance and future ETF expectations could paint a positive long-term picture. This, of course, depends on a recovery in Bitcoin and other cryptocurrencies.
