Why is Solana (SOL) price down today?
Solana's native token, SOL, has experienced a 5.5% decline on December 10 amidst significant corrections across the broader cryptocurrency market. This drop comes as SOL trades 17% below its all-time high of $263, which was reached on November 24. The market sentiment is affected by a sell-off, tied to Bitcoin's inability to maintain its position above $100,000, leading to widespread losses among major cryptocurrencies including Ether, which dropped over 4.6%. Additionally, Solana-based tokens have collectively lost significant value, with their market capitalization decreasing from $361.8 billion to $342 billion in one day. A notable decline in network transactions on Solana has contributed to reduced user engagement and a drop in daily revenue. Furthermore, technical analysis suggests that SOL is testing key support levels, with potential declines targeting $180 if the downtrend continues. The overall instability in the crypto market has been linked to Bitcoin's performance, impacting altcoin valuations, including SOL.
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