The price of Solana is in the market of a bear, after falling more than 33% of its year-on-year, technical indicators pointed to a deep decline.
Solana (Sol) token crashed by $ 184 on Monday and is hovering near its lowest level from 2 February.
This recession corresponds with stald network growth and its meme coin draws rugs within the ecosystem. CoingEcko data shows that the market cap of all Solan meme coins has exceeded $ 25 billion in January, which has today increased to $ 11.5 billion.
Most of the Solana meme coins have fallen from their all -time high levels to double digits. Official Trump (Trump) has today increased from $ 103 to $ 18 in January. Similarly, tokens like Fartcoin, AI16Z, Gigachad, and Popcat have fallen by more than 15% in the last seven days.
Solna Ecosystem includes developers that launch meme coins, artificially increase their value, exit, and leave many traders with damage. For example, inner sources of Donald Trump made profits as a trump tokens, with several caching before falling. As a result, concerns about the long -term viability of the meme coin ecosystem are increasing.
This trend has affected the amount of trading in Solana’s decentralized exchange protocols such as Radium, Orca and Jupiter. Total quantity Dropped About 25% to $ 26.21 billion in the last seven days. It has overtaken the BNB series, which handled around $ 30 billion at that time.
There is another sign of recession in Solana network Decline In stablecoin activity. The total stabechoin supplied on Solan has declined by $ 772 million in the last seven days, while the Etherium increased by $ 1.1 billion in the same period. This is important, because stablecoins are the primary medium of exchange in the blockchain industry.
Further data shows that the fees generated within the Solana ecosystem have submerged in recent weeks. The daily fee fell from a peak of $ 31 million in January, to just $ 2 million on Monday.
Solana price technical analysis
The daily chart suggests that the price of Sol has declined after reaching a high level of $ 300 in January. It has now fallen to a significant support level, which has been struggling to go down from the ascending trendline connecting its lowest swing since August 2023.
Solana is near a death cross pattern, with a 50-day and 200-day weighted moving average on the verge of a recession crossover. It is also approaching $ 170, neckline of a double-top pattern formed at $ 265.
If Sol comes below $ 170, there is a risk of a recession breakdown for $ 110, representing a drop of 40% from current levels.
