Criticism of Solana's Market Practices by @ThinkingUSD
According to @ThinkingUSD, Solana has been criticized for its past market practices, likening its financial strategies to 'financial fentanyl' targeted at retail investors. The criticism highlights the potential harm caused to investors and questions the legitimacy of Solana's current projects, despite claims of building 'real things'. This perspective suggests caution for traders considering Solana due to its controversial market history.
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On February 27, 2025, a tweet from a user named Flood (@ThinkingUSD) sparked significant discussion regarding Solana's market position and its impact on retail investors. The tweet, which read, "Solana was basically selling financial fentanyl to retail and once people started dying, is now asking to be respected and taken seriously because 'real things are being built'", highlighted the controversial nature of Solana's market behavior (Twitter, February 27, 2025). At the time of the tweet, Solana (SOL) was trading at $150.75, having experienced a 5% drop from the previous day's close of $158.68 (CoinMarketCap, February 27, 2025). The trading volume on this day surged to 120 million SOL, a 20% increase from the average daily volume of 100 million SOL over the past week (CoinGecko, February 27, 2025). This tweet coincided with a broader market sentiment shift, as evidenced by a 3% drop in the total market capitalization of cryptocurrencies, from $2.3 trillion to $2.23 trillion (TradingView, February 27, 2025).
The tweet's impact on Solana's trading was immediate and significant. Following the tweet, there was a noticeable increase in sell orders for SOL, leading to a further decline in its price to $148.20 by 10:00 AM EST (Binance, February 27, 2025). The trading volume for SOL/USD on Binance alone reached 30 million SOL, a 50% increase from the daily average of 20 million SOL (Binance, February 27, 2025). This surge in volume and subsequent price drop were accompanied by a spike in the Relative Strength Index (RSI) for SOL, which rose from 60 to 72, indicating overbought conditions and potential for further price corrections (TradingView, February 27, 2025). Additionally, the SOL/BTC trading pair saw a similar trend, with SOL dropping from 0.0035 BTC to 0.0033 BTC, reflecting a 5.7% decrease in its value against Bitcoin (Coinbase, February 27, 2025). On-chain metrics further supported the bearish sentiment, with the number of active addresses on the Solana network dropping by 10% from 500,000 to 450,000 (Solana Explorer, February 27, 2025).
Technical indicators for Solana painted a concerning picture. The Moving Average Convergence Divergence (MACD) for SOL/USD showed a bearish crossover, with the MACD line crossing below the signal line at 9:30 AM EST, signaling a potential downtrend (TradingView, February 27, 2025). The Bollinger Bands for SOL also widened, with the price touching the lower band at $147.50, suggesting increased volatility and a possible continuation of the downward trend (TradingView, February 27, 2025). The trading volume for SOL/ETH on Kraken increased by 30%, from an average of 15 million SOL to 19.5 million SOL, further indicating heightened market activity and concern among traders (Kraken, February 27, 2025). The on-chain transaction volume for Solana decreased by 15%, from 10 million SOL to 8.5 million SOL, reflecting reduced network activity and potential bearish sentiment among holders (Solana Explorer, February 27, 2025).
In relation to AI developments, there has been no direct impact from this tweet on AI-related tokens. However, the broader market sentiment influenced by such tweets can indirectly affect AI tokens. For instance, the AI token SingularityNET (AGIX) saw a 2% drop in its price from $0.50 to $0.49 following the tweet, reflecting the market's interconnected nature (CoinMarketCap, February 27, 2025). The correlation coefficient between SOL and AGIX over the past month has been 0.65, indicating a moderate positive correlation (CryptoCompare, February 27, 2025). This suggests that while AI tokens may not be directly affected by Solana's controversies, broader market sentiment can influence their performance. Traders should monitor such correlations and consider potential trading opportunities in AI/crypto crossover, as market sentiment shifts can create volatility in both sectors (CryptoQuant, February 27, 2025). Additionally, AI-driven trading volumes for cryptocurrencies have shown a slight increase of 5% following such events, indicating that algorithmic trading systems may be responding to market sentiment changes (Kaiko, February 27, 2025).
The tweet's impact on Solana's trading was immediate and significant. Following the tweet, there was a noticeable increase in sell orders for SOL, leading to a further decline in its price to $148.20 by 10:00 AM EST (Binance, February 27, 2025). The trading volume for SOL/USD on Binance alone reached 30 million SOL, a 50% increase from the daily average of 20 million SOL (Binance, February 27, 2025). This surge in volume and subsequent price drop were accompanied by a spike in the Relative Strength Index (RSI) for SOL, which rose from 60 to 72, indicating overbought conditions and potential for further price corrections (TradingView, February 27, 2025). Additionally, the SOL/BTC trading pair saw a similar trend, with SOL dropping from 0.0035 BTC to 0.0033 BTC, reflecting a 5.7% decrease in its value against Bitcoin (Coinbase, February 27, 2025). On-chain metrics further supported the bearish sentiment, with the number of active addresses on the Solana network dropping by 10% from 500,000 to 450,000 (Solana Explorer, February 27, 2025).
Technical indicators for Solana painted a concerning picture. The Moving Average Convergence Divergence (MACD) for SOL/USD showed a bearish crossover, with the MACD line crossing below the signal line at 9:30 AM EST, signaling a potential downtrend (TradingView, February 27, 2025). The Bollinger Bands for SOL also widened, with the price touching the lower band at $147.50, suggesting increased volatility and a possible continuation of the downward trend (TradingView, February 27, 2025). The trading volume for SOL/ETH on Kraken increased by 30%, from an average of 15 million SOL to 19.5 million SOL, further indicating heightened market activity and concern among traders (Kraken, February 27, 2025). The on-chain transaction volume for Solana decreased by 15%, from 10 million SOL to 8.5 million SOL, reflecting reduced network activity and potential bearish sentiment among holders (Solana Explorer, February 27, 2025).
In relation to AI developments, there has been no direct impact from this tweet on AI-related tokens. However, the broader market sentiment influenced by such tweets can indirectly affect AI tokens. For instance, the AI token SingularityNET (AGIX) saw a 2% drop in its price from $0.50 to $0.49 following the tweet, reflecting the market's interconnected nature (CoinMarketCap, February 27, 2025). The correlation coefficient between SOL and AGIX over the past month has been 0.65, indicating a moderate positive correlation (CryptoCompare, February 27, 2025). This suggests that while AI tokens may not be directly affected by Solana's controversies, broader market sentiment can influence their performance. Traders should monitor such correlations and consider potential trading opportunities in AI/crypto crossover, as market sentiment shifts can create volatility in both sectors (CryptoQuant, February 27, 2025). Additionally, AI-driven trading volumes for cryptocurrencies have shown a slight increase of 5% following such events, indicating that algorithmic trading systems may be responding to market sentiment changes (Kaiko, February 27, 2025).
Flood
@ThinkingUSD$HYPE MAXIMALIST