Solana (SOL) has seen its price nosedive over the past two days, falling nearly 15% from its weekly high and hitting $127—its lowest level since March 2021. The sharp decline comes amid a broader crypto market correction and a massive sell-off in Solana’s booming meme coin ecosystem.
Meme Coin Mayhem Wipes Out Billions
Tokens such as Fartcoin (-13.04%), Popcat (-11.65%), ai16z (-10.4%), and Bonk (BONK) were hit hard, dragging down the overall market cap of Solana-based meme coins by more than 10%, now standing at $7.2 billion. The losses represent a staggering $18 billion wiped off Solana’s meme coin market in just a few days.
The sell-off is a sharp reversal from earlier in the week when meme coin mania had fueled speculative trading across Solana’s DeFi platforms. According to DeFi Llama, DEX volume on Solana surged 60% in the last 7 days, surpassing Ethereum and Binance Smart Chain for the first time in weeks, with PumpSwap alone processing $2.8 billion in transactions.
Technical Signals Turn Bearish
The SOL/USD daily chart paints a grim technical picture. Solana has formed a bearish flag pattern, often seen ahead of major breakdowns. Compounding this bearish setup is the appearance of a death cross on March 4—when the 50-day moving average crossed below the 200-day average, suggesting further downside momentum.
If SOL breaks below the key support level at $120, which has held since April 2023, analysts warn the price could fall as low as $100 in the near term.
Bright Spots Amid the Chaos
Despite the price action, Solana continues to attract institutional interest. This week, BlackRock announced that its BUIDL tokenized money market fund—now holding over $1.86 billion in assets—has been expanded to the Solana blockchain. The move is seen as a significant endorsement of Solana’s infrastructure and long-term potential.
Outlook: Buckle Up
While the pullback reflects broader market weakness and meme coin exhaustion, Solana’s fundamentals remain supported by growing DeFi activity and rising institutional adoption. Still, unless SOL can hold above critical support, traders should prepare for a potentially volatile ride ahead.
