Solana Dips to $145. When Will it Rebound?

Solana retraced from $150 to $145 in the last 19 hours. The 1-day chart shows that the slip is not significant as it experienced a steeper decline a few days ago. It also trades almost $6 higher than its lowest value in the last seven days. 

However, the ongoing trend threatens to worsen in the coming days. It is no secret that the altcoin experienced significant price increases as DEX volume surged. It has since struggled to surge as the hype surrounding memecoins gradually evaporates. 

Data from DeFiLlama showed that trading on Solana’s decentralized exchanges has declined slightly in the last 24 hours. Fundamentals suggest that this may be the beginning of the end for memecoins and further price declines for SOL.

The project launchpad, Pump.fun suffered suspensions on X for reasons unknown to many. However, speculation suggests that the latest action may be a response to reports of scams. Several projects relating to the launchpad experienced similar action. There has been no official statement from either party indicating that the ban may be extended.

Investors showed mixed reactions to the latest event. Solana Sensei said, “Nature is healing,” following what happened to Pump.fun. He noted that he expected it sooner but voiced uncertainty over its effect on Solana. Nonetheless, another user expressed optimism that the market may circle back to NFTs after the memecoin era fades.

One of the comments under the quoted post referred to the launchpad as a leech. The user was likely referring to the massive gains the platform had between May and June. It sold over 4.1 million SOL, worth approximately $741 million, during this period. 

It recently transferred 3.84 million SOL to Kraken earlier on Tuesday, contributing to the ongoing declines. Its latest action after the suspension may indicate a final-ditch effort before a shutdown.

Solana May Slip Below $140

Solana is recovering at the time of writing. It trades at $148, $3 higher than its low. However, it risks further retracements. 

The asset trades below the 38% fib level at $151; the metric suggests further retracement after losing the highlighted mark. SOL retrace to retest the 23% fib level at $132. However, there is a notable demand concentration at $140.

Previous price movements indicate a potential rebound at this level. The altcoin bounced off this mark on Friday when it slipped from $152, with the trend repeating several times in the last two months. 

The pivot point standard hints at a slip to $136 if the bulls fail to defend the $140 support. It may retrace to the first support around this mark. Other indicators endorse this prediction, including the MACD. It displayed a bearish crossing last week and shows no signs of recovery.

Other assets in the Solana ecosystem are seeing a similar trend. Dogwifhat dropped to its lowest in almost two months. It started Tuesday at $0.83 and retraced to a low of $0.75. Although it is rebounding, traders fear further declines in the coming days as recent price movements suggest a possible decline to $0.60.

Bonk is seeing a similar trend at the time of writing. It retraced from $0.0000150 to a low of $0.0000137. It rebounded from its seven-day low but remains in danger, as the PPS indicates a possible decline to $0.000012.

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