Solana’s 68% Monthly Gain Tests Correction Waters

Solana (SOL) has recorded a bullish drive in recent months as the wider cryptocurrency market activity surged. 

The community dubbed ETH killer soared following a memecoin frenzy, wider market gains, institutional inflows to investment products, and the wider market uptick. However, in the last 24 hours, Solana has plummeted 6.22% amid ongoing cryptocurrency liquidations. 

Solana trades at $171.36 with bulls pushing toward $180 although the asset posted a declining trading volume in the last 24 hours. The altcoin trading volume stands at $8.1 billion, a 29% decline following the bearish outlook. Overall, Solana maintains its position as the 5th ranked coin by market capitalization ahead of Ripple (XRP).

High Flying Solana Stunted

Solana’s 68% monthly rise was clipped in the last four days as a result of certain factors like the fall of memecoins in the blockchain. Solana memecoin BOME which recorded a sharp rise has faced pullbacks with a 50% crash in prices.

Although the token plunged over 50%, it still records above $1,000 weekly gains from its previous uphill climb. A major narrative for the fall of BOME was the outflow from sundayfundday.sol as the address sold over 340 million BOME tokens.

According to reports, earnings on the transaction hit $3.62 million sparking a wider sale amid other Solana memecoin plunge. Last year, Solana soared over 900% positioning itself for a new all-time high after the 2022 bear market. 

Cryptocurrency prices fell in 2022 after the collapse of Terra’s stablecoin and the subsequent implosion of FTX. As a result, many assets lost over 50% of their values and made a rebound in Q2 2023 with institutional inflow to the market on the back of spot Bitcoin (BTC) ETF projections. 

Wider Market Tanks

The slip of SOL is not a lone case as top digital assets recorded sell-offs in the last seven days. Bitcoin posted an 11.56% loss last week while daily trading continues to go sideways.

Leading altcoin Ethereum (ETH) on the other hand recorded much wider losses with its price slipping 16.15% in seven days. XRP and Cardano recorded 12.9% and 18.1% losses respectively in the same period. Overall the cryptocurrency market capitalization stands at $2.4 trillion with a declined trading volume of 13%.

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