Solana (SOL) has experienced a dramatic price decline, crashing 15% from its weekly high to $127 on Saturday. This substantial drop has pushed the cryptocurrency to its lowest level since March 2021, marking a concerning development for investors. The sell-off coincides with broader weakness across Solana’s popular meme coin ecosystem, with tokens like Fartcoin (-15%), Popcat (-11.41%), ai16z (-12.72%), and Bonk suffering double-digit percentage losses. Collectively, Solana meme coins have shed over $18 billion in market value within just a few days, with their total market capitalization falling to $7.2 billion.
Despite this bearish price action, Solana’s network has shown remarkable activity in recent days. According to DeFi Llama, decentralized exchange (DEX) volume on Solana surged by 60% over the past week to more than $3 billion, temporarily outpacing both Ethereum and BNB Smart Chain (BSC). This unusual spike in trading volume indicates significant trader interest in Solana meme coins before the market downturn. The DEX protocol Pump dominated this activity, handling over $2.8 billion in transactions and outperforming established Solana DEXs like Orca, Meteora, Raydium, and Lifinity.
From a technical analysis perspective, Solana’s chart presents several bearish signals. The cryptocurrency has formed a bearish flag pattern after dropping substantially from its January high of $295.45. Additionally, Solana experienced a death cross on March 4, with the 50-day moving average crossing below the 200-day moving average—a traditionally bearish indicator. These technical patterns, combined with recent price action, suggest potential further downside with $100 emerging as a possible target if Solana breaks below the critical $120 support level that has held since April last year. This bearish outlook persists despite positive fundamental developments, including BlackRock expanding its BUIDL money market fund (now worth over $1.86 billion) to the Solana network.
