Solana price has crashed into a bear market, mirroring the broader crypto market’s performance. It has plummeted by 30% from its highest point this year and is at risk of further downside as its ecosystem growth slows down.
Why Solana Price Has Plunged
The SOL price has plunged in the past few months due to the ongoing crypto market crash affecting Bitcoin and most altcoins. They have all plummeted because of the ongoing trade-related risks, government shutdown, and the recent liquidation.
Solana price has also plunged because of the waning influence of its ecosystem. Data shows that the market cap of all Solana meme coins has dropped to $7 billion, down from over $22 billion a few months ago. All SOL meme coins, including popular names like Official Trump, Bonk, and Pudgy Penguins, have all plummeted.
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This slowdown has affected Solana’s DeFi ecosystem. DeFi LLama data shows that its total value locked (TVL) has dropped by 21% in the last 30 days to $22.53 billion. Also, Ethereum has overtaken Solana in terms of DEX volume. It has handled over $143 billion in the last 30 days compared to Ethereum’s $147 billion.
Solana’s futures open interest has continued falling, which is a sign of low liquidity and demand. The same has happened in the spot market, where its volume has plunged after the recent liquidation.
Still, Solana has some potential catalysts. For example, its stablecoin growth is continuing. It now has a stablecoin supply of $15.7 billion and handled $446 billion in volume in the last 30 days.
The other bullish catalyst is that Solana is working on the Alpenglow upgrade, and that the SEC is set to approve several SOL ETFs once the government shutdown ends.
SOL Price Technical Analysis
The daily chart shows that the Solana price has plunged in the past few months. It has already moved below the 50-day and 200-day Weighted Moving Averages (WMA). Also, the coin has crashed below the lower side of the megaphone or rising broadening wedge pattern.
Most oscillators have continued moving downwards. Therefore, the most likely SOL forecast is that it will continue falling and move to the ultimate support of the Murrey Math Lines at $150.
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