Since Solana was founded in March 2020, there has been some criticism. Through a thread he created, Cyber Capital founder Justin Bons exposed the network’s recent “anomalies.” and how it violated decentralization in the sense of DeFi.
Despite controversy, the bullish pullback of the native token was seen in the Solana network. This is not surprising considering the nature of many of the conflicts that the Solana network has been involved in.
Are future gains possible with this price fall?
Confusion Barrier
Bons, who has started numerous threads about the latest network developments, is currently the loudest Solana critic.
Solana has had many outages this year, the most recent being on October 1, according to his latest thread.
It is an important issue for the network as it could undermine investor trust in the token and the project.
Chart: TradingView.com
An issue with a single validator on Solana’s blockchain led to the outage. As a result, the entire blockchain came to a halt, rendering all transactions suspended for a short time.
Solana used check-pointing as a means of restarting the whole cluster. They broke down the decentralization in their decentralized system.
The developers also appear to be the subject of this thread. Two network developers took on the role of 11 network developers, according to the thread. To increase TVL, these two network developers double-counted.
SOL gained around 8% in the third and fourth of October despite some recent difficulties, but then started to fall earlier this morning.
What does this say about Solana
SOL traded at $33.35, an increase of 4% over the previous 24 hours.
Negative narratives are also presented by indicators. Bull and bear power indicators have maintained a downward trend which sends investors and traders strong selling signals. This signal is also followed by stochastic RSI numbers, which indicates strong investor sentiment.
SOL could face worse things in the future if this trend continues. Today’s forming downtrend could be the beginning of the token’s free fall.
The price of the stock should not drop below the Fibonacci level at 78.60 Fibonacci, as any breach will result in a sell-off.
SOL Total Market Cap at $11.8 Billon on Daily Chart | Featured image from Coinpedia, Chart: TradingView.com