The solana (left) price has lost more than 5 %today and fell below the critical $ 190 support level. This harsh decline is associated with the decrease in the activity in the network and the recent Libra Memecoin scandal. The loss of confidence of investors created a major sales pressure in the left ecosystem.
Why does solana fall?
According to CoinMarketcap data, solana has suffered a decrease in nearly 5 %in the last 24 hours and is at risk of decreasing to $ 180. Crypto analyst Ali Martinez shared an important data that explained Solana’s decline. According to Martinez, the number of wallets that hold more than 100 lefts decreased by 2.24 %in the last two weeks. This shows that large investors sell solana and contribute to the price decrease.
In addition, a significant decrease in the volume of the decentralized stock market (Dex) in the Solana network was observed. The fashion show data showed that SOL’s dex processing volume is reduced by 24 %. This may be because investors shift their capital to Binance Smart Chain (BSC) network from Solana. According to the same sources, the volume of Dex in BSC has increased close to 50 %in the last seven days.
Effect on Libra Memecoin scandal and left
One of the most important reasons for the decline in the left price was the recent Libra Memecoin incident. Argentine President Javier Milei introduced a Solana Memecoin named LIBRA in his X account last week. However, this token quickly lost more than 94 %and recorded as a major Rug Pull Case.
According to the report of Solana Post, 74,698 investors lost a total of 286 million dollars due to LIBRAKEN. On the other hand, the involved people from this project earned over $ 100 million. This scandal seriously shook the confidence in the left ecosystem. Investors think that SOL’s Memecoin ecosystem is full of fraud projects. For this reason, many investors shift their funds to more reliable ecosystems such as BSC and Ethereum.
Is there a bigger drop for solana at the door?
In addition to all these developments, the left price may face more sales pressure in the coming days. According to Coingape’s report, in early March, the $ 2.06 billion left token will be released. These tokens were sold in auctions made within the scope of FTX bankruptcy case. The sale of large companies such as Pantera Capital to sell these tokens can cause a greater collapse in the price of solana.
Investors are currently following SOL’s critical support levels. If the $ 180 level is broken, the drop for the left may deepen much.
