.svg)
Why Is Solana's Price Struggling Today?
Solana (SOL) struggles to surpass $140 due to declining transaction volumes and market interest, facing strong resistance levels.
looking for a development partner?
Connect with technology leaders today!
Why is Solana (SOL) struggling to break past $140? Despite a remarkable 642% rise over the past year, the excitement around memecoins and airdrops is fading fast. With transaction volumes plummeting and key moving averages acting as barriers, many are left wondering if SOL can regain its momentum or if it's stuck in a downward spiral.
Solana's (SOL) price has encountered significant challenges in maintaining levels above $140 since September 10. Despite demonstrating buying interest at the $125 support level, the price remains stagnant compared to a month ago. Several factors contribute to this decline, including a waning market enthusiasm for Solana-based memecoins and a notable drop in transaction volumes. The impressive price surge that propelled SOL to $210 in March 2023 now appears unsustainable, leading to corrections across various Solana-based cryptocurrencies.
Recent data highlights a substantial decrease in activity on the Solana network. The volume on the Pump.fun platform has plummeted by 70% over the past month, while the number of transactions has fallen by 30%. Furthermore, the total value locked (TVL) on the Solana network has decreased by 13%, indicating a decline in user engagement. This reduction in activity has resulted in diminished demand for SOL tokens, further exerting downward pressure on its price.
Analysts suggest that SOL's price could recover if it can successfully breach key resistance levels. The 200-day exponential moving average (EMA) currently sits at $139, with the 50-day and 100-day EMAs at $143 and $147, respectively. However, previous attempts to surpass these levels have resulted in lower highs, indicating persistent sell-side pressure.
In summary, Solana's price struggles are closely tied to decreased market activity and formidable resistance levels. Without a significant uptick in user engagement, SOL may continue to face challenges in regaining its upward momentum. As the market evolves, stakeholders will be keenly watching for signs of recovery and renewed interest in the Solana ecosystem.
.svg)
.svg){kind=small}