- Solana’s price has dropped by 3.50% in the past 24 hours and is trading at $124.
- Solana’s revenue fell by 93%, reaching its lowest level since September.
- Technical indicators suggest further price decline if bearish momentum persists.
The crypto market is experiencing uncertainty as the fear and greed index drops to 15, the level last seen during the FTX collapse. The global market cap has declined to $2.65 trillion while the 24-hour trading volume surged to $150 billion.
The momentum has continued to be bearish, resulting in major declines across the altcoins sector. Solana (SOL), one of the leading altcoins, has been trading in a descending channel since losing its all-time high of $295.
At press time, SOL is exchanging hands at $124, down by 3.50% in the past 24 hours, according to CMC data. SOL has declined by 8% and 38% on the weekly and monthly charts, respectively. Furthermore, its market cap and trading volume have dropped to $63 billion and $6.13 billion, respectively.
Solana’s Revenue Drops Sharply as Meme Coin Frenzy Fades
Meme coin activity drove Solana’s weekly revenue to a peak of $55.3 million in mid-January. However, this boom is fizzling out, and the decline has been sharp. Solana’s network revenue plunged 93% last week to $4 million, the lowest level since September.
Moreover, Solana’s decentralized application (DApp) revenue dropped 86%. It fell from $238 million in January to only $32 million last week. This downward trend is due to the fading of the meme coin hype itself, which was once a significant revenue source for Solana.
Over the same period, Solana’s total value locked (TVL) has dropped by nearly 50%. Capital tied to the ecosystem plummeted from $12 billion to $6.4 billion. A recent downturn in meme coin trading has coincided with it.
Rapid growth platforms such as Pump.fun are now struggling. In January, its daily revenue peaked at $15 million but dropped 95% to $800,000 by March 7. Solana’s price has fallen 58% since its mid-peak in January due to its fading meme coin trend.
Technical Analysis: Will Solana’s Price Dip Further?
Solana’s market shows a bearish sentiment on the daily chart based on the technical indicators. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are in the negative territory.
Currently, the RSI has a value of 36, which means that the market is oversold. This indicates a lack of buying pressure as the sellers dominate the market. Should the current trend hold, SOL could correct toward the $100 level.
The bearish sentiment remains strong as the MACD line stays below the signal line. Furthermore, the histogram is printing red bars and the SOL price could fall further if the buyers don’t overcome sellers.
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