The price of Solana has dropped significantly, causing investor concerns. The main reasons include internal ecosystem challenges and a decrease in trading volumes on decentralized exchanges.
Financial Figures and Statistics
Solana reached $126.5 on March 21, reducing its market cap from over $127 billion to $64.45 billion, wiping out approximately $63 billion from the ecosystem.
Internal Ecosystem Challenges
The collapse of meme coins on the Solana platform led to a decrease in their market cap from $25 billion to $7.2 billion. Trading volume on decentralized exchanges such as Raydium, Orca, and Meteora fell by 34% to $8.3 billion over the last week.
Technical Analysis of Solana's Price
The daily chart shows that Solana is in a strong downward trend, having fallen from $295 in February to $126. It has formed a 'flag pattern' at a critical support level, a break below which could lead to further price declines, potentially targeting $100.
The future of Solana will depend on the project's ability to address current internal challenges and restore investor confidence. This situation highlights the importance of stability and trust in cryptocurrency ecosystems.
