Why did the price of Solana (SOL) fall today? Analyze the reasons behind it
What is the reason for the Solana (SOL) price drop today? Recently, usage of the Solana network has decreased significantly due to the massive decline in memecoin craze, causing the SOL price to fall.
Over the past year, Solana’s price has increased by 642%, driven primarily by airdrops, memecoin, and Pump.fun activity. However, the craze appears to have petered out in recent months. Market participants generally believe that SOL’s rise to $210 in March 2023 is unsustainable.
Data shows that Pump.fun’s trading volume has dropped by 70% in the past month, and the number of transactions has also dropped by 30%. In addition, from August 13 to September 10, the Solana network’s daily transaction volume plummeted from 20,465 to 1,778, and the total value locked (TVL) dropped from US$5.48 billion to US$4.77 billion. This indicates a significant decrease in user and developer engagement with the network.
In order to resume the growth trend, SOL must break through resistance at the major moving averages, which would require price to move steadily above the 200-day, 50-day, and 100-day exponential moving averages. Only if the daily close exceeds these levels can the bull market hope to revive and push SOL back higher.
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