Solana (SOL) Price Rally in Deep Trouble–May Plunge Below $170 Soon
Solana faces a tough battle below $200, down nearly 17% from its monthly high above $220. After several failed attempts to break the key resistance level, despite the previous bullish momentum, Sol Price Now, fears are below the support level for multiple months, raising concerns about the upcoming price action.
One of the main reasons for the decline is the controversy surrounding the ecosystem, scams related to members such as Libra, Pumpkin, and Ellora, which have led to community attention.
The enormous hatred of the commemorative factors has seriously affected the Solana ecosystem, including Sol Price. Total Locked Value (TVL) has cut from a high above $12 billion to $8.9 billion; the number has dropped from $35 billion to $2.5 billion, while the number of transactions continues to grow.
Defilama’s above data suggests that traders are uncertain about the next price action. A decrease in volume indicates a smaller demand for tokens, while an increase in transactions indicates an increase in individual transactions. Additionally, since its ATH price rejection at $296, open interest (OI) has also dropped from $6.5B to $4.1B, confirming uncertainty among market participants. What’s next? Can the Bulls defend their support for $180?
Solana (SOL) price analysis
Solana Price has been one of the most powerful cryptocurrencies and has maintained a huge trend for a long time. Meanwhile, the rise of memes on the platform emits bearish waves on the token. SOL prices collapsed from key support, which doesn’t seem to be part of a healthy uptrend.
The above picture flashes with a large number of bearish signals from Sol Price Rally. Prices are about to be verified below the critical 200-day MA’s breakdown at $183.47, while OBLE maintains a downward trend, forming lower highs and lows. The bearish difference is confirmed by the accumulated price decline of bearish obv. Therefore, the token that just slipped out of the top 5 is expected to enter a critical resistance zone between $181.99 and $178.50.
If the Bulls fail to hold within that range, this week’s Sol price rally could be about to drop $170.
