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Solana Price Plummets Amid Crypto Market Sell-Off
The Solana price experienced a sharp decline over two consecutive days as the broader cryptocurrency market faced significant selling pressure. This downturn has particularly impacted Solana’s meme coin ecosystem, erasing gains made earlier this week.
Solana Price Hits Lowest Level Since March 2021
On Saturday, Solana’s price dropped to $127, marking a 15% decrease from its weekly high. This price level represents the lowest point for Solana since March 2021. The decline coincided with a widespread crash in meme coins within the Solana ecosystem, with tokens such as Fartcoin, Popcat, ai16z, and Bonk experiencing drops of over 10% each.
Market Cap of Solana Meme Coins Declines
The market capitalization of Solana’s meme coins fell by over 10%, landing at $7.2 billion. This represents a substantial loss, with these tokens collectively erasing over $18 billion in value over the past few days. Third-party data suggests that traders had been buying into the meme coin rally earlier in the week, contributing to the sharp declines seen now.
Solana DEX Volume Outpaces Ethereum and BSC
Despite the price drop, Solana’s decentralized exchange (DEX) sector displayed strong activity. According to recent data, Solana DEX volume surged by 60% in the past seven days, reaching over $3 billion. This volume exceeded that of Ethereum, which handled $11.35 billion, and Binance Smart Chain (BSC), which processed $8.9 billion. This marks a rare occasion when Solana’s DEX protocols performed better than these two major competitors.
The majority of Solana’s DEX volume originated from the Pump protocol, which alone handled over $2.8 billion worth of transactions. Other notable DEX platforms on the network, including Orca, Meteora, Raydium, and Lifinity, contributed to the overall volume but trailed Pump in market share.
Positive Developments for Solana
While Solana’s price decline dominated headlines, the network did see some positive news. BlackRock, the world’s largest asset manager, expanded its BUIDL money market fund to Solana. This development is significant as BUIDL’s assets have grown to over $1.86 billion, signaling increased institutional interest in the network.
Solana Price Technical Analysis
From a technical perspective, Solana’s price chart reveals bearish trends. The cryptocurrency has plunged from its January high of $295.45 to $126 recently. It has also formed a bearish flag pattern characterized by a steep vertical drop followed by a consolidation phase shaped like a rectangle.
Additionally, Solana experienced a death cross pattern on March 4, when its 50-day moving average crossed below its 200-day moving average, both pointing downward. This combination of bearish indicators suggests a potential breakdown to $100. However, for this scenario to unfold, Solana would need to breach the critical support level at $120, which it has consistently held since April last year.
Key Takeaways
- Solana’s price dropped to $127, its lowest level since March 2021, amid a broader cryptocurrency market sell-off.
- Solana meme coins saw significant losses, with their collective market cap falling by over $18 billion in just a few days.
- Despite price declines, Solana’s DEX volume surged by 60%, outperforming Ethereum and BSC in weekly activity.
- BlackRock expanded its BUIDL money market fund to Solana, highlighting institutional interest in the network.
- Technical analysis points to potential further declines, with $120 serving as a critical support level to watch.
Stay tuned for more updates on cryptocurrency trends and market movements.
