Solana price collapsed hard amid rising concerns about its future. SOL/USD plunged to a low of $11.47 last week as FTX imploded. It has plummeted by more than 50% from its highest point this month. YTD, the coin has fallen by over 90%, making it the worst-performing big-cap cryptocurrency in the world. So, will Solana survive?
Solana DeFi and NFTs collapse
Solana price has plunged hard in the past few days as concerns about its exposure to FTX continued. It had a bigger exposure to the company since it was one of the biggest holdings by Alameda Research. As a result, analysts believe that Alameda made a fire sale as the crisis unfolded.
At the same time, Solana’s ecosystem has started crumbling. Its total value locked (TVL) in the DeFi industry has plunged from over $10 billion in 2021 to about $606 million. Leading ecosystems like Marinade Finance, Solend, Cega, and Raydium have seen their TVL plunge by over 60% in the past 30 days. This decline has been partially offset by Saber, whose TVL has soared by more than 130% in the past 24 hours.
The same trend has happened in the NFT industry. The volume of Solana NFTs has crashed in the past few days. Data shows that the number of daily unique buyers has plunged from more than 26k in September to about 3,500. In terms of total volume, sales dropped from $129 million in September to $67 million in October.
Solana price prediction
The four-hour chart shows that the SOL price has formed a double-bottom pattern at $12.22. In price action analysis, this pattern is usually a bullish sign. The coin also formed a small hammer patten. Nonetheless, the coin remains significantly below its all moving averages while the Stochastic Oscillator has moved to the neutral level of 50.
Therefore, there is a likelihood that Solana price will likely have a relief rally as investors buy the dip. If this happens, it could retest last Friday’s high of $18. A drop below the support at $12.22 will invalidate the bullish view.
