Solana price is flashing bearish signals after decentralized exchange (DEX) volumes on the network plunged by $90 billion in just two months. This decline in activity has raised concerns about weakening demand, which could precede a significant sell-off. Amid these headwinds, SOL price struggles to recover, and now faces a 35% drop.
Solana Price in Focus as DEX Volumes Plunge $90B From Peak
The price of Solana struggles to maintain a bullish structure as on-chain data reveals a sharp decline in DEX trading activity. DEX volumes on Solana hit a peak of $97.53 billion in mid-January amid a meme coin mania driven by the TRUMP and MELANIA tokens. However, as meme coin activity wanes, these volumes have crashed by 94% to the current $7.65 billion per DeFiLlama.
As DEX volumes decline, the broader Solana ecosystem also shows signs of slowing momentum. Data from Dune Analytics shows a drop in the Solana address count, suggesting that fewer traders and investors are interacting with the network, which also puts Solana price at risk.
In January, total addresses on Solana stood at 6.2 million, but this has since dropped to around 230,000. Meanwhile, new addresses have also fallen from 2.3 million to around 65,000 within two months.
This reduced activity comes after PumpFun meme coin activity stalled. As meme coin volumes dwindle, Solana price faces increased downside risk, particularly amid the broader market downturn. With weaker trading activity and fading investor enthusiasm, SOL faces a steeper correction in the coming weeks.
Analyst Forecasts Solana Price Crash to $80
Analysts are sharing a bearish Solana price prediction as network activity fades. According to CryptoPatel, SOL price has broken below a rising wedge pattern on the weekly chart, confirming a bearish trend.
If this breakdown sustains, the price of Solana could decline toward a key support area of $84, representing a 35% decline. This level has previously acted as a strong demand zone. Failure to hold this support could trigger a sharper drop toward the mid-range level of around $40.
SOL Confirms a Death Cross
The Solana price chart with a one-day lookback period confirms that the altcoin has confirmed a death cross. Usually, this pattern confirms market weakness, leading to an even sharper price drop.
However going by past trends, the price of Solana tends to move in the opposite direction of a death cross. For instance, after SOL price formed a death cross in late 2023, the price shot up from around $24 to past $200 within five months. Last year, Solana also formed a death cross that preceded an uptrend from around $130 to past $250 within two months.
If history repeats itself, this death cross could mark a turnaround for Solana price. However, for an uptrend to happen, network activity needs to rise again to boost investor confidence and increase the buy-side pressure.
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