Although the last week was exceptionally successful for Solana (SOL), the currently fifth-largest asset in the cryptocurrency sector by market capitalization, it has opened this week on a bearish note, having lost nearly $2 billion to its market cap in a single day.
Specifically, Solana’s market cap has dropped over 4% in the last 24 hours, declining from $47.76 billion to $45.78 billion during this time, which equals a loss of $1.98 billion, according to the latest information from the crypto market monitoring platform CoinMarketCap on February 12.
Solana 24-hour market cap chart. Source: CoinMarketCap
Solana 24-hour price chart. Source: Finbold
Bears vs. bulls
As a reminder, Solana experienced a major network outage on February 6 in what was the first such incident since February 2023, during which its mainnet beta stopped working and producing blocks, resulting in a two-hour halt in activities, affecting users, investors, and developers.
Although this outage failed to pull SOL down at the time, the latest weakening could represent a delayed effect. However, one of the factors that could push its price and market cap back up is the recent 100,000 preorder milestone for Solana’s smartphone that merges blockchain with mobile technology.
100,000 preorders in less than 30 days ?We’re floored by the demand and truly grateful for the overwhelming support?Now that we’ve hit this milestone, the Founder Window & preorder price of $450 will close in 48 hours. Your chance to join is now!? https://t.co/nYR9apGGIT pic.twitter.com/9L224igXcL
— Solana Mobile 2️⃣ (@solanamobile) February 12, 2024Additionally, the pseudonymous stock and crypto investor Jelle recently pointed out the similarities between the movements of Solana and Ethereum (ETH) in 2020, hinting at the possibility of a bullish scenario for SOL that would “send it back to $120” as per the explanation shared on February 12.
Solana vs. Ethereum price action analysis. Source: Jelle
Overall, Solana seems to be in a bit of a pickle during the last day, but it does not mean that it may not recover soon, considering that things in this industry can often change on a whim. Hence, keeping a close eye on it and doing one’s own due diligence is important before investing in any crypto asset.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
