The persistent network sluggishness observed in the recent weeks is a directly contradiction to Solana’s core value proposition of high transaction speed and efficiency.
Amid the market downtrends, node validators and Solana DeFi protocol investors could react by un-staking more SOL and possibly seek out alternatives in the week ahead.
Solana Price Forecast; Bears could target $100 Reverse in May 2024
Node validators flooding the markets with $1.9 billion in newly-unstaked coins has been a major catalyst behind the downward SOL price trend in the last weeks. However, with network congestion still driving up transaction failure rate, Solana appears poised for further price downswing towards $100 in May 2024.
The Bollinger bands and Relative strength index technical indicators also affirm this pessimistic Solana price outlook for May 2024.
Firstly, SOL price is now trading below the lower-limit Bollinger band at $124, signaling an overwhelming bearish sentiment within the SOL markets. Without a significant support cluster around the current prices, SOL is now at risk of tumbling toward $100.
