Solana’s (Sol) Price trade is 52% below all times high $ 295 on January 19. The 41% drawdown last month was accompanied by a 40% drawdown in total amount locked in Solana, along with Sol’s technical setup that teaches additional forefront losses ahead.
Solana TVL drops $ 5B in 30 days
The Total amount that is locked (TVL) In Solana’s blockchain fell 39.2% last month, the largest monthly drawdown from November 2022, when was the FTX exchange has fallen.
Solana’s TVL fell from a full time $ 12.1 billion reached from January 24 to $ 7.4 billion at the time of writing.
Solana TVL and Onchain Volume. Source: Defillma
TVL measures the total amount of all possessions that are locked in Decentralized Finance (DEFI) Protocols. As TVL rises, this means that many coins are deposited in defi protocols and may indicate bullish emotions. A falling TVL shows that investors are taking their funds out of ecosystem as well as a reduction in network activity and liquidity.
Data from Defillama Shut up That the subsequent drop on TVL was led by Raydium, with a stop of 53% fall in 30 days. Other major decentralized applications such as Jupiter Dex, Jito Liquid staking, and saving lending are registered with a 25%, 41% and 42% decline, respectively.
TVL is locked in Solana’s top defi protocols. Source: Defillma
They directly affect Solana’s onchain volumes, which dropped from a weekly collection of $ 97 billion in the second week of January to $ 11 billion this week.
These metrics indicate a glaring shift in the trust of investors in Solana’s ecosystem, leading to a 20-40% decline in activity on average last month.
Solana Memecoin Market Cap Plummets 70%
Falling on Solana’s TVL reflects a collapse in the memecoin market capitalization as price tanks across the board.
Most Solana-based memecoins posted a double-digit daily losses, as shown in the figure below. Most of these tokens are 80% to 90% from their peaks.
Token performance based in Solana. Source: Co ringecko
As a result, Solana’s memecoin market collective cap dropped from a peak of $ 25 billion in December 2024 to $ 8.3 billion today. It represents a 68% collapse in less than three months.
Related: Solana (Sol) price sell-off accelerates-Do entrepreneurs defend $ 130 support?
This fall on the prices of Memecoins based on Solana and Market Cap is preceded by reducing DEX activity on the layer-1 blockchain.
The chart below shows the sun -sun volume of Dex trading of Solana Memecoins -including those who have been deployed to pump.fun -accepted from $ 22.1 billion on January 19 to $ 1.6 billion on February 26
Memecoin trading volume in Solana. Source: Blockworks research
Decreased memecoin activity in Solana indicates low network activity and prevention of use, negatively affecting demand and soling prices.
Sol Price of Eyes an additional 20% collapse
From a technical point of view, Sol’s price action completed a double pattern as shown in the daily chart below. Now, the question is how low is Solana going?
The Sol Price sits on the immediate support provided by the neckline of the existing chart pattern at $ 135. This support loss will see the price fall to sweep the liquidity between Sept. 6, 2024, low in $ 120 and August 5, 2024, ranges down to $ 110. The said transfer represents a 22% decline from the current price.
Sol/USD Daily Chart. Source: Cointelegraph/Tradingview
On the other hand, the RSI position in 28 paint has oversold conditions. This indicates that $ 135 can provide a good entry position. Increasing demand from this level, combined with high volumes, may begin a long recovery for SOL in the coming days.
Famous crypto analyst gum believe That Solana’s lowest price can go “is around 10% higher than the final galaxy price and other funds purchased FTX locked in $ Sol.”
“It’s about $ 110 as a minimum before a bounce.”
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
