The post What’s Causing Solana’s Price Decline? appeared on BitcoinEthereumNews.com.

The current state of Solana’s market reveals significant challenges, with its price standing 52% lower than its all-time high. Recently, a drastic 41% drop in price and a 40% decrease in Total Value Locked (TVL) have raised concerns regarding investor confidence in the platform. Is TVL Reflecting a Participation Decline?Will Market Capitalization Continue to Fall? Is TVL Reflecting a Participation Decline? The TVL within the Solana network has plummeted by 39.2% over the last month. Falling from a record $12.1 billion in January to just $7.4 billion now, this trend points towards reduced activity among decentralized finance (DeFi) participants. Will Market Capitalization Continue to Fall? The market capitalization of Solana’s memecoins has dramatically reduced from $25 billion in December to $8.3 billion currently. This reflects a wider trend, with many tokens losing 80-90% of their value since their peak, and a significant decline in decentralized exchange (DEX) activities indicates investor withdrawals. Technical charts for SOL show a completed double top, with support levels identified around $135. If this is breached, analysts predict further drops to the $120-$110 range. The RSI indicates that the market may be oversold, suggesting possible future price corrections. TVL has declined significantly, indicating reduced DeFi engagement. Market cap of Solana memecoins has decreased substantially, reflecting investor pullback. Technical indicators suggest critical support levels may be tested soon. Overall market activity is diminishing, signaling potential liquidity issues. These market dynamics urge participants to reassess their risk strategies. While occasional signs of recovery may appear, the overall trend necessitates a cautious approach and thorough research before making any investment decisions. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research. Source: https://en.bitcoinhaber.net/whats-causing-solanas-price-decline

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Filed under: News - @ February 28, 2025 8:20 am