The Solana Price has fallen to a significant support level as recent meme coin pump-end-dump bicycle leads to speed in its ecosystem.
The price of Solana (Soul) was trading at $ 200 on Friday, 32% below its highest level in 2024, a sign that it is in a bear market.
Recently, the third-party data as a decline suggests that network development has lost speed in the last few months. Most of the meme coins have crashed in its ecosystem, causing $ 25 billion to their total market cap to $ 12 billion in January.
One of the major challenges of Solana is its association with the viral meme coins that grow before drowning in the beginning. For example, the official Trump (Trump) Meme coin has crashed from $ 75 to $ 20, while Melania (Melania) has increased from $ 12 to $ 1.5.
As a recurring pattern New York Times wrote Recently reported, new meme coins have been launched which experience rapid benefits before crashing. Internal formulas often sell at the peak, making many retail traders caught bags.
These pump-end-dump cycles have caused a sharp decline in the decentralized exchange trading volume of Solana. The data of the Defee Lama shows that the volume in its protocol has come down by 30% to $ 28.5 billion in the last seven days. Solana has now overtaken the Benance Smart Chen, which has handled the dollar of $ 27 billion.
Salana’s sales in non-fangbal token industry have also decreased. Its total NFT sales in the last seven days Dropped From 32% to $ 11 million.
The network fee has decreased as a result of this recession. Data compiled by Tokenterminal suggests that the daily fee fell to $ 3.48 million on Thursday on Thursday, below the summit of $ 31 million on 19 January.
Solana price technical analysis
The daily chart shows that the price of Sol is getting stronger at a significant support level for the last few days. It remains slightly above the 200-day exponential moving average and ascending trendline, which has added the lowest swings since August last year. Historically, Solana has retaliated after testing these levels.
The Solana Price is also close to support in $ 170, the lowest swing in January, and the neckline of the double-top pattern at $ 265.
A drop under these support levels will favor the bear and further negative indication. Such a step may increase the chances of decline of the lowest swing, $ 110 from July last year.
The alternative landscape is a rebound, possibly pushing Solana towards a major resistance level of $ 250.
