Solana Price Analysis as Expert Labels SOL a House of Cards

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.” 

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. 

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. 

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.