27.01.2025 19:50
Solana (SOL), one of the popular cryptocurrencies of recent times, is experiencing sharp price declines due to the decline of the memecoin craze. At this point, experts believe that the price of Solana (SOL) could drop to the $200 level as the demand for memecoins decreases and technical indicators are signaling negatively.
Solana has fallen to $226, a 23% drop from its peak as the meme cryptocurrency frenzy subsides. With SOL dropping below the 20-day Exponential Moving Average, it is preparing to test new low levels under selling pressure. Price predictions prepared by experts suggest that the cryptocurrency could fall below $210.
Signs of Decline in SOL Price Are Becoming More Apparent
Solana, one of the notable altcoins in the cryptocurrency market, entered a downward trend after reaching a record high of $295.83 on January 19. As of the writing of this news, the cryptocurrency is trading at $226, experiencing a 23% loss compared to its peak.
The slowdown in memecoin activity within the Solana ecosystem has negatively impacted SOL's market value. On January 19, coinciding with Trump's inauguration and the launch of the Melania meme coin, the decrease in demand for the Trump-themed memecoin created on Solana led to a drop in transaction volume on the network and caused a decline in SOL's price.
Technical indicators are also signaling a decline for SOL. The cryptocurrency has lost 9% in value, dropping to $226 and falling below the 20-day Exponential Moving Average line. The breaking of the EMA value, which prioritizes recent prices in short-term trends, indicates that the downward trend is strengthening and the upward momentum is weakening.
The MACD indicator also points to a similar picture. The blue MACD line falling below the orange signal line indicates that selling pressure is increasing and the likelihood of a price decline is rising.
According to Fibonacci Retracement levels, it is predicted that SOL could drop below $210 and test the $202.73 level. Analysts suggest that if demand for the asset revives, the current decline scenario may lose its validity, and the price could enter an upward trend again.