Solana Price Forms Bearish Flag as Revenue, Transactions Crash

The Solana worth is on the verge of an enormous breakdown as the community charges drop. After rising to close $300 earlier this 12 months, the coin has dropped to $129 and is hovering close to its lowest degree since September 18 final 12 months.

Solana Chain Charges Have Plunged

Knowledge compiled by DeFi Llama exhibits that the charges generated within the Solana ecosystem have dropped sharply this 12 months.

Solana has made simply $21 million this month, its worst efficiency since October final 12 months. It is a huge drop from the $90 million it made in February and the $250 million it made in January this 12 months. Cumulatively, Solana has generated over $1.2 billion in charges.

Solana’s charges have gone down due to the continuing meme coin crash. In response to CoinGecko, the market worth of all meme coins within the ecosystem has dropped from over $30 billion in January to $7.7 billion at present.

There have been a number of meme cash with a market cap of over $1 billion in January. Immediately, solely Official Trump has a valuation of over that milestone. TRUMP has a valuation of $2.2 billion, down from over $14 billion after its launch.

There are issues that the Solana meme coin ecosystem has peaked, with many individuals accusing it of quite a few rug pull scams. This occurred after many meme cash had been launched, soared, after which crashed as insiders cashed out.

Extra information exhibits that the variety of transactions on Solana has continued to fall this 12 months. The community dealt with 43.5 million transactions on March 21, down from the year-to-date excessive of virtually 77 million.

Solana’s income crash has additionally coincided with the drop in its DEX volume. The community dealt with $38 billion in DEX quantity this month, down from $258 billion in January. This decline has affected in style DEX networks in its ecosystem, like Raydium, Orca, and Meteora.

Solana Price Technical Evaluation

There are indicators that the SOL worth could have a bearish breakdown quickly. The chart above exhibits that it has shaped a bearish flag sample, which is a well-liked bearish continuation sign. This sample is made up of a vertical line and a consolidation. It resembles an upside-down hoisted flag. 

The Solana worth has remained under all of the transferring averages, whereas most oscillators just like the RSI and the MACD have pointed downwards. Due to this fact, a drop under the important thing assist at $120 will enhance the chance of Solana’s worth falling in direction of $100.