Solana, a prominent cryptocurrency, is facing challenges in sustaining its upward trend. Despite briefly surpassing the $150 mark, it has entered a corrective phase. Currently, SOL is trading at $129.54, showing a 4.41% increase in the last 24 hours but has declined by 12.53% over the past week.

According to the latest Solana forecast, the coin could close the year at $119. This prediction aligns with SOL briefly touching the $120 mark on May 1, triggered by stakers withdrawing $1.9 billion worth of staking contracts due to network congestion issues.

This development caused Solana to reach a 14-day low of $118.72, marking a 41% loss in value in April alone, with indications suggesting a further downward trend.

Between April 15 and May 1, stakers withdrew over 16 million SOL from contracts, highlighting concerns about network congestion issues. On April 30, Solana's transaction failure rate remained high at 60.5%, negatively impacting new projects and contradicting its core value proposition of efficiency and high transaction speed.

Given the broader struggles in the crypto market, the possibility of more SOL being unstaked in the coming weeks could lead to the coin testing the $100 support level. This assessment is supported by indicators like the Bollinger bands and Relative Strength Index, indicating a pessimistic outlook for Solana in May 2024, potentially leading to new lows during the month.