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The current market structure is not favorable to Solana bitcoin (SOL) as the coin has dropped at a faster rate than its peers, mimicking the intense bullish volatility that helped it chart an impressive rally to end the last year. According to data from CoinMarketCap, the 24-hour slump in the Solana price is pegged at 8.98%, bringing the price to $80.51. SOL 1D Price Chart. Source: CoinMarketCap
With the daily plunge, the weekly losses have expanded to more than 17%, proof that the sell-offs of Solana’s price are not a one-off event but one that is looking like it has come to stay. Over the past year to date, Solana recorded one of the most intriguing growth trends, soaring to a yearly high of $125.19.
In 2023, Solana recorded almost a 700% growth year-on-year (YoY), bringing in a much-concerning outlook for the protocol with its spiral downward growth. From current trends, the Solana bubble appears to have burst as old investors had ample time to take profits following the momentary surge to a multiyear high.
The busted Solana bubble is also reflected in the outlook of the meme coins built on top of it. After a series of bullish mega rallies, meme coins like BONK and Dogwifhat (WIF) are now facing intense selling pressure as buyers sheath their swords.
Potential Solana growth catalysts in view
One reassuring factor about the current Solana downtrend is that it is an encompassing market affair. The emergence of spot Bitcoin ETFs has not resulted in the expected bullish growth trends for BTC that can rub off on the general market.
With Bitcoin notably leading the altcoin market plunge, one crucial Solana catalyst will be to see a reversal in the bigger coin’s bearish trend. Additionally, the optimism surrounding the yet-to-be-released Solana Mobile upgrade and how it can drive new users is also a positive catalyst that can change the narrative for SOL in the mid-to-long term.