🌎 Solana Price Drops 35% Amid Crypto Market Decline

Solana Price Drops 35% as Ecosystem and Broader Crypto Industry Lose Momentum

The Solana price has retreated to $200, a psychological level marking a 35% decline from its highest point this year of $295 in January. This pullback is largely attributed to Bitcoin and other altcoins losing momentum, with Bitcoin falling from its year-high of $109,200 to below $99,000.

Impact on Solana Ecosystem

The decline in Solana’s price has had a ripple effect on its ecosystem, with the total market capitalization of all Solana meme coins decreasing from over $25 billion in January to $12 billion, according to CoinGecko. Most of these tokens, including Bonk, Dogwifhat, Pudgy Penguins, and Fartcoin, have dropped by more than 30% in the last 30 days.

The trading volume on Solana’s decentralized exchange has also fallen, with a 25% decline in the past seven days to $41.6 billion. Notable exchanges, such as Raydium, Meteora, and Lifinity, saw their weekly volume decline by over 30% in the same period.

Decline in NFT Sales and Active Wallets

Solana’s non-fungible token sales have dropped by 36% in the last 30 days, with sales falling to $75 million, according to CryptoSlam. Furthermore, the number of active wallets in the network has decreased to 3.8 million, down from 6.5 million in January.

Solana Price Prediction

The daily chart shows that the SOL price has moved into a technical bear market, falling by about 35%. Solana has also moved below the 50-day and 25-day Exponential Moving Averages, indicating that bears are gaining control. The coin has formed a double-top pattern at $265, with a neckline at $170.

A drop below the neckline and the lower boundary of the ascending channel would confirm further downside, potentially pushing the price to the 61.8% retracement level at $120, representing a 40% decline from current levels.

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