Solana (SOL) has faced serious challenges dropping below $200 and has almost decreased 17% from its monthly high above $220. Concerns about its future price trend have increased as it is on the verge of falling below long-term support. One of the main reasons for this decline is controversies surrounding the Solana ecosystem involving scams related to meme coins like Libra (LIBRA), Pumpfun, and Meteora. Total Value Locked (TVL) in this network has decreased from its peak of $12 billion to $8.9 billion, and transaction volume has plummeted from $35 billion to $2.5 billion. The data from Defilama indicates uncertainty among traders about the future price trend. In addition, the Open Interest (OI) has also dropped from $6.5 billion to $4.1 billion, confirming market uncertainty. The question remains: can bulls defend the $180 support level? Solana has long been one of the strongest digital currencies, maintaining a significant upward trend. However, the increase in meme coins on this platform has imposed downward waves on this token. The chart signals strong bearish indications for Solana’s price trend, with the price hovering around confirming a breakdown below the 200-day moving average at $183.47 and the On-Balance Volume (OBV) maintaining its downward trend with forming lower highs and lows. Consequently, this token, which has recently dropped out of the top 5 cryptocurrencies, is expected to enter the key support range between $181.99 and $178.50. If bulls fail to maintain the price in this range, there is a possibility of Solana’s price dropping below $170 in the upcoming week.
