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Solana Down Today: TA and FA Reveals Why
Solana (SOL) is down over 6% today, November 14, 2023. This is the third day in a row that SOL has declined, and it is now trading at its lowest level in over a month.
There are a number of possible reasons for SOL's recent decline. One reason is the overall weakness in the cryptocurrency market. Bitcoin (BTC) has also been down in recent days, and this has dragged down other cryptocurrencies, including SOL.
Another reason for SOL's decline is the potential sale of a significant amount of SOL by FTX. FTX is a cryptocurrency exchange that is reportedly preparing to sell $628 million worth of SOL. If this sale goes through, it could put downward pressure on the price of SOL.
Technical analysis (TA)
From a TA perspective, SOL is currently in a bearish trend. The price is below its 50-day moving average, and the MACD indicator is bearish. This suggests that there is more selling pressure than buying pressure on SOL.
The next major support level for SOL is at $40. If SOL breaks below this level, it could fall to $35 or even $30.
Fundamental analysis (FA)
From a FA perspective, Solana is a strong project with a bright future. Solana is a high-performance blockchain platform that is capable of processing thousands of transactions per second. Solana is also known for its low fees and scalability.
However, there are a few FA concerns that could be weighing on the price of SOL. One concern is the potential sale of a significant amount of SOL by FTX. Another concern is the recent network congestion that Solana has experienced.
Investor's take:
Investors should be cautious about SOL in the short term. The price is in a bearish trend, and there is a risk of further downside. However, investors should keep an eye on SOL in the long term. Solana is a strong project with a bright future, and the price could rebound if the cryptocurrency market improves and the network congestion issues are resolved.