Solana Price in Bear Market

Solana’s price remains in a bear market, falling over 57% from its peak this year. The current price is $126.5, leading to a market cap of $64.45 billion, down from over $127 billion a few months ago, erasing roughly $63 billion in value.

Market Challenges

The ongoing crash in Solana’s ecosystem includes a collapse in the meme coin market, where the total market cap of Solana-based meme coins has plummeted from over $25 billion in January to $7.2 billion. Currently, only the meme coin Official Trump (TRUMP) maintains a market cap above $1 billion.

The decline also severely affected trading volumes on Solana-based decentralized exchanges (DEXs) like Raydium, Orca, and Meteora. According to DeFi Llama data, trading volume on these DEXs has decreased by over 34% in the last week to $8.3 billion.

In comparison, decentralized exchanges on the BSC network handled $14.2 billion during the same period, while Ethereum DEXs processed $9.65 billion. Over the past 30 days, Solana’s DEX protocols managed $61 billion in volume, trailing Ethereum’s $78 billion. This is a significant reversal, as Solana was the most active chain for DEX trading since October of the previous year.

The decline has also affected network revenue. Data indicates that Solana generated $21.2 million in revenue this month, a drop from $90 million last month and a peak of $258 million in January.

Solana Price Technical Analysis

The daily chart indicates SOL has been on a steady downward trend for several months, dropping from $295 in February to $126 due to escalating ecosystem challenges.

Solana formed a death cross pattern on March 3, where the 50-day and 200-day moving averages crossed. Currently, it is forming a bearish flag pattern, typically resulting in a strong downward trend.

This pennant develops at a crucial support level that Solana has struggled to maintain since last April. A confirmed breakdown below this level is likely to lead to further losses, aiming for the next target around $100, which is approximately 25% below the current price.