Solana Price Analysis as Expert Labels SOL a House of Cards

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Solana Price Analysis as Expert Labels SOL a House of Cards

Highlights

  • Solana price is struggling to defend critical support at $142 amid a surge in selling activity.
  • The founder of DeFi Report has labelled the Solana ecosystem a "house of cards" due to very few addresses contributing to the network fees.
  • If SOL price fails to hold the $142 support, it could drop to $110.

Solana price edged lower on Friday amid a pullback across the broader crypto market. At press time SOL trades at $143 after a 5% decline in 24 hours. Despite this price decline, the Solana network has outperformed Ethereum and other blockchains in fees, but one market expert believes that the blockchain is like a “house of cards.” 

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Solana Price in Focus as Expert Labels Blockchain a “House of Cards”

The Solana blockchain has outpaced other networks in terms of fees, amid a surge in activity on the PumpFun meme coin launchpad. Data from TokenTerminal shows that in the last 30 days, the total fees on the Solana blockchain hit $74M, which was notably higher than Ethereum’s $35M. 

However, according to the founder of The DeFi Report Michael Nadeau, these fees do not indicate high activity on the Solana blockchain. He said,

“The Solana growth arc is impressive. But if you look under the hood, it looks like a house of cards.” 

Nadeau also added that in the last 30 days, 95% of the total fees on Solana came from only 1.26% of wallets. Additionally, most of the fees were from meme coins being traded on the blockchain amid heightened activity around the PumpFun meme coin launchpad, which helped to boost Solana price. 

Despite the criticism, Wall Street giant Franklin Templeton believes that Solana is rivaling Ethereum in DeFi dominance. The asset manager also noted that Solana’s one-year uptime record was boosting adoption, which may bode well for the Solana price. 

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Solana Technical Analysis 

Solana’s outlook on its daily chart shows a significant surge in selling activity and a lack of fresh demand from retail traders. The RSI has flattened below 50, showing that a bearish momentum is in place, and buyers are not buying the recent dip. 

The bull-bear power indicator also shows a similar outlook, with the negative histogram bars suggesting that selling activity is higher than buying activity. If sellers remain in control, it could see Solana price losing its make-or-break support level at $142. 

If Solana fails to defend this support as whales continue to sell SOL, it could prompt a notable decline to the $110 level. On the other hand, if the Solana price bounces from this support level, it could push the price up towards the $179 resistance level. This could pave the way for a recovery past $200. 

Solana Price Analysis as Expert Labels SOL a House of Cards
SOL/USD: 1-day Chart

This technical outlook shows a bearish Solana price prediction. However, as the network activity rises, it could bode well for the altcoin’s future price outlook. 

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Frequently Asked Questions (FAQs)

1. Why is Solana price dropping?

Solana price is dropping amid a surge in selling activity and a bearish sentiment across the broader crypto market.

2. Is Solana a "house of cards"?

Experts have labeled Solana a house of cards due to less than 2% of addresses contributing to the network fees and activity.

3. Will Solana flip Ethereum in network activity?

Wall Street giant Franklin Templeton believes Solana could flip Ethereum in network activity amid rising adoption.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.