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Solana (SOL) is capitulating unusually as it appears to be bucking the trend at a time when most altcoins are picking up pace. At the time of writing, the coin is priced at $61.30, down by 5.59% in the past four hours. Though the daily outlook is poor, for the week, Solana has managed to retain some 9% growth overall.
Solana billed for more, here’s why
The drop in Solana’s price might be an upsetting development for day traders, as in the long term, the $61 price level may be considered a perfect steal considering the bullish growth outlook many have placed on the protocol.
One of three key factors that will ultimately help propel the price of Solana is its network evolution. The blockchain protocol is arguably transitioning into airdrop season as many of the projects on Solana are ripe for the public market. This is arguably the impact of the Grizzlython organized earlier in the year.
Solana’s retail and whale impact is also poised to play a critical role in its renaissance. While subtle headwinds are on the horizon, institutional capital inflow and retail buy-up, showcased via the 37% jump in trading volume to $2,070,760,055, shows interest remains pumped up.
Lastly, this is bound to rub off on Solana, per the broader market outlook. The Bitcoin spot ETF approval hype might have an underlying bullish impact on Solana moving forward.
Solana tradeoffs on horizon
Solana has arguably broken free from the impacts of the collapse of the FTX Derivatives Exchange and the accompanying FUD it ushered in.
The only tradeoff left that might bump up the growth of SOL in the long term is the potential liquidation that FTX will conduct as it looks to wrap up its bankruptcy proceedings. Nonetheless, the positive strength of Solana outweighs the negative and, as such, the chances its growth will pick up in the near term are higher.