Solana plummeted last night, and many of the brothers who went long were completely liquidated. The current market situation is becoming increasingly difficult, with a drop from a high of 2.17 to around 200 in just one day. Guang Ge noticed repeated pullbacks and a straight decline.
Guang Ge summarized three reasons for the sharp decline:
1. Yesterday afternoon, the entire market was in decline, and investor confidence was low, with a strong risk-averse sentiment. When the overall market environment is poor, it is difficult for Solana, as one of the mainstream crypto assets, to stand alone. Funds flowed out from Solana and other cryptocurrencies, leading to a decrease in its price.
2. Many people had made a lot of money during the previous period and thought about taking a good rest during the holidays, which resulted in a significant loss of funds from the market, causing prices to drop accordingly. Yesterday was also referred to as "Black Friday."
3. Some large players and institutional investors in the market have significant capital and influence, and their trading decisions can have a major impact on Solana's price. If large players or institutions sell off a large amount of Solana for reasons such as taking profits or adjusting their portfolios, it may trigger market panic, leading more investors to follow suit and sell off, resulting in a price crash.
