Solana’s struggle below $200 continues, now down 17% from its monthly highs above $220. Despite previous bullish momentum, SOL is facing serious downside risks, with multi-month support levels in danger.
Why Is Solana Dropping?
– Memecoin Controversy – Scams linked to LIBRA, Pumpfun, and Meteora have shaken investor confidence.
– Declining TVL & Volume – TVL fell from 12B to 8.9B, while trading volume collapsed from 35B to 2.5B.
– Open Interest (OI) Drops – Fell from 6.5B to 4.1B after rejection from its ATH of $296.
Technical Breakdown Signals Bearish Divergence
Breaking Below 200-Day MA ($183.47) – SOL is losing critical support.
OBV Downtrend – Lower highs and lows confirm bearish divergence.
Pivotal Resistance Zone: $181.99 – $178.50 – If bulls fail to hold this range, expect a drop below $170.
What’s Next for SOL?
– Bullish Case: SOL needs to reclaim $185+ quickly to regain momentum.
– Bearish Case: If support at $178 fails, SOL could dip below $170 this week.
With memecoin uncertainty hitting Solana’s ecosystem, will the bulls step in, or is a deeper drop coming?