- Solana struggles below $200, facing resistance from memecoin scams and declining market interest.
- Without support around $180, Solana’s price could soon drop below $170.
Solana (SOL) is fighting to stay above $200, but recent price action hints at a tough road ahead. After peaking above $220 last month, the price has dropped by nearly 17%, leaving the market uncertain about the next move.
Solana Faces Setback from Memecoin Scams
The downfall of Solana’s price isn’t just about market trends. Memecoin scams, such as LIBRA, Pumpfun, and Meteora, have cast a shadow over the ecosystem. These scams have caused outrage within the community, resulting in a drop in confidence. The entire Solana network, including the SOL price, has taken a hit. Total value locked (TVL) plummeted from over $12 billion to $8.9 billion. Volume also dropped sharply, from $35 billion to just $2.5 billion, signaling less demand for SOL.
Bearish Signals Build as Support Levels Fade
The market seems unsure of which direction to take. On-chain data shows a concerning trend. While the number of transactions continues to rise, the drop in trading volume reflects declining interest. The open interest (OI) has also fallen from $6.5 billion to $4.1 billion, showing traders’ hesitation. The critical support level at $180 is now in focus. If the bulls can’t defend this level, the SOL price might plunge below $170.
Technical Breakdown and Bearish Divergence
Looking at the technical side, things don’t look much better. Solana has broken below a crucial support level. The 200-day moving average (MA) at $183.47 is now a key line in the sand. The On-Balance Volume (OBV) is on a downward trend, forming lower highs and lows. This confirms a bearish divergence, with the price set to face heavy resistance in the $181.99 to $178.50 range.
If the bulls fail to hold at these levels, a drop below $170 could be just around the corner.
Solana Struggles Ahead: A Price Correction Looms?
Solana’s price action has been impressive in the past, but the rise of memecoins and recent market struggles have put a strain on its bullish momentum. With resistance building and bearish signals in play, SOL may soon face a significant correction. Whether the bulls can defend key support levels remains to be seen, but a test below $170 is increasingly likely in the days ahead.
