Solana faces significant challenges: the token's price has dropped, user activity is down, and the decentralized exchange sector is in decline.
Solana's Challenges: Price and Activity Drop
The Solana token has dropped to $159, its lowest level since November 6, and is down 46% from its February high. This follows a decline in meme coin prices, impacting the ecosystem. The market cap of all Solana meme coins has decreased from $25 billion in January to $9.8 billion.
State of the Decentralized Exchange Market
DEX trading volume on Solana has decreased by 36% in the past seven days, totaling $16.7 billion, which is lower than Ethereum and BSC. This reflects the overall drop in activity within the Solana ecosystem.
Solana Price Forecast
The SOL price chart shows a continued bearish trend after peaking at $295.28 in January. The formation of a double-top pattern and a death cross suggests further price decline. The next significant level to watch is $110, last reached in August of the previous year. A breakout above the $200 level could alter this outlook.
Solana is facing several challenges, including price and activity declines. Attention is focused on the nearest support and resistance levels, which may determine future market movement.
