Solana’s value stays in a bear market after falling over 57% from its highest degree this 12 months, with additional draw back possible.
Solana (SOL) dropped to $126.5 on March 21, bringing its market cap to $64.45 billion — down from over $127 billion just some months in the past, wiping out roughly $63 billion in worth.
The continued Solana crash has been pushed by main challenges inside its ecosystem. Its meme coin market has collapsed, with the overall market cap of Solana-based meme cash dropping from over $25 billion in January to $7.2 billion. At present, solely Official Trump (TRUMP) maintains a market cap above $1 billion.
This decline has led to a major drop within the buying and selling quantity dealt with by Solana-based decentralized exchanges resembling Raydium, Orca, and Meteora. DeFi Llama information exhibits that quantity on these platforms has fallen by over 34% within the final seven days to $8.3 billion.
As compared, DEX protocols on the BSC community dealt with $14.2 billion throughout the identical interval, whereas Ethereum DEXs processed $9.65 billion. Over the past 30 days, Solana’s DEX protocols dealt with $61 billion in quantity, trailing Ethereum’s $78 billion.
This marks a serious reversal, as Solana had been essentially the most energetic chain for DEX buying and selling since October final 12 months. The decline has additionally impacted community income. Knowledge exhibits that Solana generated $21.2 million in income this month, down from $90 million final month and a peak of $258 million in January.
Solana value technical evaluation
The each day chart exhibits that SOL has been in a robust downward development over the previous few months. It plunged from $295 in February to $126 as challenges inside its ecosystem intensified.
Solana fashioned a loss of life cross sample because the 50-day and 200-day shifting averages crossed one another on March 3. The coin is now forming a bearish flag sample, which is made up of a protracted vertical line and a rectangle sample. This sample often ends in a robust bearish breakdown.
The pennant is growing at a crucial help degree that Solana has struggled to interrupt beneath since April final 12 months. A confirmed breakdown beneath this degree would possible set off additional losses, with the following goal round $100, roughly 25% beneath the present value.
