Solana's (SOL) price rise is in danger; it could soon fall below $170.
At the moment, Solana is worth about 17% less than its all-time high of almost $220 per month and is fighting to stay above $200. Concerns have been raised that SOL may soon fall below its multi-month support level, even though it has been going up lately, because it has repeatedly failed to break through major resistance levels.
Environmental controversy contributed to this decline. Libra, Pumpfun, and Meteora scams have alarmed consumers.
Because people dislike memecoins, Solana’s community and value have declined.
Trading volume has dropped from $35 billion to $2.5 billion, while TVL has dropped from $12 billion to $8.9 billion.
Nevertheless, the transaction volume continues to rise.
Data from DefiLlama indicates that traders exhibit uncertainty.The drop in volume shows that people aren’t buying as much SOL, while the rise in trades shows that there are more individual deals.
The fact that open interest (OI) has dropped from $6.5 billion to $4.1 billion since the price was turned down at its highest point of $296 shows how unsure the market is. Is it possible for bulls to keep the important $180 level of support?
A Look at the Prices of Solana (SOL)
Even though Solana has always had a big share of the market, the rise of memecoins has put downward pressure on the price. Since SOL has dropped below a key support level, it may no longer be in a good upswing.
Technical signs point to additional risk of decline. The On-Balance Volume (OBV) is still in a downward trend, making lower highs and lows, and the price is about to drop below the important 200-day MA at $183.47. A bearish divergence is confirmed by the combination of a price decline and a bearish OBV.
SOL recently slipped out of the top five cryptocurrencies by market cap; it now faces a key resistance zone between $181.99 and $178.50. If bulls fail to maintain support within this range, a drop below $170 may be inevitable in the coming days.
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