Solana Faces Bearish Pressure as Price Plummets
Solana’s price has been struggling in a bear market,dropping over 57% from its peak this year. On march 21, SOL hit $126.5, reducing its market cap to $64.45 billion. This is a important drop from its earlier value of over $127 billion.
The decline is due to several challenges within Solana’s ecosystem. The meme coin market on Solana has collapsed, with its total market cap falling from $25 billion in January to just $7.2 billion. Only Official Trump (TRUMP) retains a market cap above $1 billion.
This downturn has also affected Solana’s decentralized exchanges.Platforms like Raydium,Orca,and Meteora have seen a 34% drop in trading volume over the last week,totaling $8.3 billion. In contrast, BSC and Ethereum DEXs handled $14.2 billion and $9.65 billion, respectively.
Over the past 30 days, Solana’s DEX protocols processed $61 billion, lagging behind Ethereum’s $78 billion. This marks a shift, as Solana was the most active chain for DEX trading since October last year.
The decline has impacted Solana’s revenue. this month, it generated $21.2 million, down from $90 million last month and a peak of $258 million in January.
Technically, SOL has been in a downward trend since February.It formed a death cross pattern on march 3 and is now developing a bearish flag pattern. If this pattern confirms, Solana could see further losses, with the next target around $100.
