The price of Solana (SOL) has experienced a significant drop today, raising concerns among cryptocurrency investors. The drop has occurred amid a widespread decline of tokens based on the Solana network and a bearish divergence in the RSI, suggesting that the correction is likely not over.
Solana has been correcting alongside other cryptocurrencies, which have also fallen, driven by an overheated market and Bitcoin's failure to maintain above $100,000. Bitcoin remained relatively unchanged with losses of 2%, while major tokens and mid-cap capitalizations recorded their worst losses in months following a sharp drop during the early trading hours in Asia on December 10.
Ether has fallen more than 4.6% in the last 24 hours to trade at $3,735. Other high-cap cryptocurrencies, including BNB, XRP, and Dogecoin DOGE, have also recorded significant losses in the last 24 hours. Tron TRX has shown the largest daily losses among high-cap cryptocurrencies, dropping 13.8% today.
Similarly, the total cryptocurrency market capitalization has decreased by 4.5% in the last 24 hours, standing at $3.46 trillion at the time of publication.
What does this mean for Solana investors?
Today's drop in the price of Solana is a sign that the market is experiencing a correction. It is important to note that corrections are a normal part of the cryptocurrency market cycle and do not necessarily mean that the long-term upward trend has reversed.
However, investors should be cautious and closely monitor the price of Solana in the coming days. If the drop continues, it could be a sign that the market is losing interest in Solana.