Solana risks falling to $ 100

Crypto industry analysts note that last week, the price of Solana SOL $256.79 Solana 1.26% Market capitalization $121.88 billion VOL. 24 hours $1.25 billion failed to overcome a bullish breakout and has been falling on the charts ever since. Investor and market pessimism contributed to the decline in the asset’s value.

According to crypto experts, any chances of a recovery in the SOL price by investors are likely to be in vain. The reason for this is the lack of incentives at the moment, as indicated by the Sharpe ratio.

The Sharperatio is a risk-adjusted return measure calculated by dividing the excess return of an investment by its standard deviation. It helps investors assess the performance of an investment by comparing its return to its risk.

Low values often mean that investors may refuse to invest in a project due to low chances of profit. This is a likely outcome for Solana as well, as the Sharpe ratio is -4.27%, the lowest in the last four months.

Solana’s price at $ 134 failed to break through and start a rally in line with the ascending triangle pattern that SOL followed in mid-April. Since then, the altcoin has been declining and is now facing the threat of a «death cross».

The death cross occurs in technical analysis when the short-term 50-day exponential moving average (EMA) crosses below the long-term 200-day EMA, indicating a potential downtrend. This is often interpreted as a bearish signal for the market.