- Solana plunged 41.99% in a month, hitting a five-month low of $131, with market cap dropping to $69 billion.
- Open interest in SOL futures fell 44%, from $6.39B to $3.57B, as trading volume declined 54%.
- Solana’s RSI dropped to 26, signaling strong selling pressure and a deep bearish phase.
Solana (SOL), a leading cryptocurrency, has been on a significant downtrend over the past month. SOL has extended its downward spiral, plunging 41.99% over the past month to trade at $136. The sharp decline has pushed SOL to a five-month low of $131, dragging its market capitalization to $69 billion. The broader crypto market remains highly volatile, with Solana suffering one of the steepest drops amid waning memecoin hype.
The recent decline has coincided with broader market instability triggered by external factors. The ByBit exchange hack and U.S. President Donald Trump’s tariff proposals have led to a general downturn in crypto prices. Bitcoin, the market leader, has fallen by 12% over the past week. However, Solana has experienced an even sharper drop of 22%, reinforcing its downward trajectory and adding to bearish market sentiment.
Crypto General highlighted on X that SOL has entered a critical support zone at $134. If this level fails, the next support could drop below $100, marking a 65% decline from its all-time high. The bearish trend has intensified following broader market instability and declining investor confidence, pushing Solana’s price downward.
Memecoin Craze and Solana’s Declining Interest
While many memecoins are speculative assets with little intrinsic value, they boosted Solana’s ecosystem. According to Zach Pandl, head of research at Grayscale, the recent memecoin frenzy helped attract new users, generate revenue, and stress-test the SOL blockchain. However, as the craze fades, trading volume has plunged, reducing investor engagement.
Open interest in Solana’s future has declined significantly, falling 44% in the past month. The figure has dropped from an all-time high of $6.39 billion to just $3.57 billion, indicating reduced confidence in leveraged positions. CoinGecko data further reflects a similar trend, with trading volume decreasing by 54% in the last 48 hours, leaving only $5 billion in daily trades.
Popular crypto analyst Ali Martinez has suggested a potential dip to $65. In his analysis, Martinez noted that Solana appears to be forming a right-angled ascending broadening pattern, which signals growing market volatility and the potential for strong price movements. A breach below this pattern could result in a sharp price decline, with SOL hitting a low of $65, which would send it to a 14-month low.
According to AMBCrypto’s analysis, SOL is in a strong bearish phase. The prevailing market conditions position SOL for further losses on its price charts. The Relative Strength Index (RSI) has dropped to reach oversold territory at 26, suggesting strong selling pressure. Additionally, Solana’s Total Value Locked (TVL) has been in a free fall, dropping to a three-month low of $7.3 billion, implying that few users are currently engaged with the SOL network.
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