Solana sentiment cools amid network issues, weak technicals

According to an analysis by Santiment, investor sentiment toward Solana (SOL) is cooling rapidly as the cryptocurrency endures a slump, having fallen 67% from its high last year. The analytics firm pointed to several key factors for the downturn: a security update in January followed by a network outage in early February, struggling technical indicators like the Relative Strength Index (RSI), negative funding rates and strong short positions on exchanges, and a broader crypto market correction leading to liquidity outflows. Santiment noted that while Solana is currently experiencing a loss of momentum, its price could recover in the next bull cycle if it continues to diversify its clients, such as with Firedancer, and strengthen its infrastructure.