Solana Price Faces Downward Trend

Solana (SOL) token has plummeted to $159, marking its lowest point since November 6 and a 46% drop from February’s peak.

Market Challenges

This significant decline coincides with the downturn in meme coin valuations. The total market cap of all SOL meme coins decreased from $25 billion in January to $9.8 billion. Popular tokens like Dogwifhat, Official Trump, and Pudgy Penguins have collectively lost billions in value.

Internal Metrics Decline

According to TokenTerminal data, active users on the Solana platform have dropped to 87.3 million, the lowest since October 7, down from November’s peak of 137 million. This indicates that some users may have sold their tokens.

Solana’s revenue has also dipped below $1 million per day, earning $978,000 on February 14, a far cry from this year’s peak of $44 million.

The decentralized exchange sector is struggling too, with Solana’s DEX volume falling by 36% in the last week to $16.7 billion, trailing behind Ethereum’s $18.3 billion and BSC’s $16.9 billion.

Price Forecast

The daily price chart reveals a strong bearish trend since peaking at $295.28 on January 19. Solana formed a double-top pattern at $263, with a neckline at $169—its lowest swing on January 13.

Recently, Solana’s price has fallen below this neckline, indicating bearish dominance. The formation of a death cross pattern, where the 200-day and 50-day Weighted Moving Averages cross, further supports this outlook.

As a result, the forecast for SOL price remains negative, with the next key target at $110, approximately 30% below the current valuation. A break above $200 would challenge this bearish perspective.

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