The Solana Price has crashed to a significant support level and is at risk of further decline after the death cross pattern.
One of the top cryptocurrency, Solana (Sol), has fallen to $ 138 below 53% from its highest level this year.
The accident coincides with the ongoing crises in its ecosystem as most meme coins are submerged. CoingEcko data shows that the market cap of all Solan meme coins exceeds $ 25 billion in January, which has increased to $ 7.6 billion.
Official Trump (Trump), the largest Solana Mem Sikka, has fallen by 10% in the last seven days, making it a $ 2.4 billion market cap.
In the last seven days, other meme coins like Bonak, Dogwifat, Pudi Penguin and Fartcoin have all slipped more than 20%. In particular, only the official trump coin has a market cap of more than $ 1 billion.
In the last few weeks, after some high-profile blow-ups, the coins of Solana Mem have become toxic property. The most prominent was one Libra, which reached a market cap of over $ 4 billion after being promoted by Xavier Mili and then crashed.
The Solana Price has not been promoted by President Donald Trump’s possibility of joining the crypto stockpile. A polymercate Voting The property shows $ 301,000 that the obstacles of a strategic Solana Reserve have fallen to more than 40% to just 25% earlier this month.
On the positive side, there are increasing obstacles that the Securities and Exchange Commission will approve a spot Soul ETF later this year. These obstacles have jumped up to 86% on polymercate.
Further fall?
The daily chart suggests that the Soul Price is in the bottom trend in the last few months. It has fallen from $ 300 to $ 140 today.
Sol crashed under the ascending trendline, which connects the lowest swings since August last year. It went below the major support level at $ 170, the lowest swing on 13 January, and the neckline of double-top pattern.
It has formed a death cross pattern as a 50-day and 200-day moving averages.
Therefore, the coin will probably continue to fall, with a psychological point at $ 100 with the next target level.
Why Solana?
Solana was launched in 2020 by Anatoli Yacowenco, a former Qualcomm Engineer, as well as co-founder Greg Fitzgerald and Raj Gokal. Its blockchain was designed to offer high throwing, low transaction costs, and rapid processing speeds, using a unique consensus system called proof of history (POH), combined with proof of steak (POS).
So far, it has attracted a large community of developers, which have ripened an environment for use of meme coins.
Meme coins thrive on their blockchain for some major reasons:
- Low transaction fee: This makes the launch of tokens for developers and users often make them cheaper to trade, which is ideal for the speculative of meme coins and often high-virtuous business nature.
- high speed: It can process thousands of transactions per second, which ensures liquidity and reduces slippery during business, the meme coin attracts enthusiastic people who often pursue rapid profit.
- Developer friendly equipment: This Salana program provides a strong growth environment with equipment like library (SPL) and strong support for rust programming language. This ease of deployment encourages quick launch of meme coins, often with minimal effort.
These factors jointly make Solana a popular choice for launching meme coins, despite the risk of space and the risk of scams.
