🌎 Solana Price Drops to Lowest Level Since November

Solana Price Faces Downside as Ecosystem Metrics Crash

The Solana token has plummeted to $159, its lowest level since November 6, and 46% from its highest level in February. This decline is a result of the ecosystem facing significant challenges amid meme coin price weakness. The total market cap of all SOL meme coins has drastically dropped from $25 billion in January to $9.8 billion, with popular tokens like Dogwifhat, Official Trump, and Pudgy Penguins shedding billions in value.

Declining Ecosystem Metrics

According to TokenTerminal data, the number of active users has decreased to 87.3 million, its lowest level since October 7. This represents a significant drop from the November high of 137 million, indicating that some Solana users have sold their tokens. Furthermore, Solana’s revenue has declined below $1 million per day, down from this year’s peak of $44 million.

Decentralized Exchange Volume Declines

The decentralized exchange industry is also experiencing a downturn as Solana meme coins plunge. The DEX volume has dropped by 36% in the last seven days to $16.7 billion, lower than Ethereum’s $18.3 billion and BSC’s $16.9 billion.

Solana Price Forecast

The daily chart shows that the SOL price has been in a strong bearish trend after peaking at $295.28 in January 19. It formed a double-top-like chart pattern at $263, with a neckline at $169, its lowest swing on January 13. Having already dropped below this neckline, it’s a sign that bears have prevailed.

Solana has also formed a death cross pattern, which occurs when the 200-day and 50-day Weighted Moving Average cross each other. The Percentage Price Oscillator has moved downwards, indicating a bearish outlook.