Solana (SOL) is flashing strong bearish signals, with its price forming a death cross pattern while key ecosystem metrics—including active users, revenue, and decentralized exchange (DEX) volume—continue to plummet. The token has dropped to $159, marking its lowest level since November 6 and a 46% decline from its February peak.
Solana’s Decline Amid Meme Coin Weakness
The recent Solana price crash coincides with the broader downturn in meme coins, which had been a significant driver of activity on the network. The total market cap of Solana-based meme coins has plunged from $25 billion in January to just $9.8 billion. Popular tokens such as Dogwifhat (WIF), Official Trump, and Pudgy Penguins have shed billions in value, reducing overall trading activity and investor interest in the Solana ecosystem.
Active Users and Revenue Hit New Lows
According to TokenTerminal data, Solana’s active user base has dropped to 87.3 million, marking its lowest level since October 7. This represents a significant decline from the November high of 137 million, suggesting that many Solana users have exited their positions.
Revenue generation has also collapsed, with Solana earning just $978,000 on February 14, compared to its yearly peak of $44 million.
Solana DEX Volume Drops as Competition Heats Up
The decentralized exchange (DEX) sector has taken a hit, with Solana’s total DEX volume plunging by 36% in the past week to $16.7 billion. The decline places Solana behind Ethereum ($18.3 billion) and BNB Smart Chain ($16.9 billion) in terms of total trading volume. This drop in on-chain activity further signals waning interest in the Solana network.
Solana Price Forecast: Bearish Trends in Play
From a technical standpoint, Solana’s daily chart shows a sustained bearish trend since its January 19 peak of $295.28. The formation of a double-top pattern at $263—with a neckline at $169 (January 13 low)—suggests that bears are in control. The price has already fallen below this neckline, reinforcing the downtrend momentum.
Additionally, Solana has now formed a death cross, a technical pattern that occurs when the 50-day Weighted Moving Average (WMA) crosses below the 200-day WMA, indicating further downside. The Percentage Price Oscillator (PPO) has also turned negative, strengthening the bearish case.
SOL Price Target: Is $110 Next?
Given the current market structure, Solana’s next major support level is at $110, the lowest swing from August 2023. This represents a potential 30% decline from its current price.
However, a break above the $200 resistance level could invalidate the bearish outlook, signaling a potential recovery. Until then, market sentiment remains heavily tilted toward the downside, with traders closely watching key support levels.
