Crypto: Solana Below $200, Should We Be Worried?

Are Solana’s performances a flash in the pan or just turbulence? In any case, volatility has hit again as SOL plummets below $200. Traders, initially euphoric, are starting to sweat as on-chain volumes drop by 28% in a week. A brutal correction, fueled by the end of the excitement for memecoins and a decrease in transaction fees. But hope remains, particularly with speculations around a spot ETF.

Solana slowing down: a network losing speed?

The Solana news: the network is not escaping the storm. In a week, its transaction volumes have dropped to $31.8 billion, a plunge of 28%.

The memecoin craze has calmed down, leading to a massive decline of certain gems in the genre:

• Dogwifhat (WIF): -60%;
• Goatseus Maximus (GOAT): -67%;
• MooDeng (MOODENG): -69%;
• Peanut the Squirrel (PNUT): -72%;
• Just a Chill Guy (CHILLGUY): -75%.

This cold snap is reflected in Solana’s decentralized applications, with notable declines: -47% for Orca and Phoenix, -27% for Raydium. But beware of hasty conclusions: Ethereum, BNB Chain, and other blockchains are also experiencing a similar slowdown.

Analyst Alex Svanevik reminds us that Solana outperforms Ethereum on several key indicators, particularly in terms of active addresses and transaction volumes.

A crypto market under pressure, Solana in search of rebound

While Solana is in turmoil, the crypto market as a whole remains under pressure. The key indicator of perpetual futures shows a negative funding rate for SOL since February 2, a sign that enthusiasm is fading.

But one detail could change everything: the anticipation of a Solana spot ETF, which could attract institutional flows.

https://twitter.com/IconNick_NFT/status/1889277177977610713

Trader IconNick analyzes the situation:

“SOL is trying to rebound in the 180-190$ zone, but the real test is between 210 and 220$.“

He identifies key levels:

• Support at 190-195$;
• Resistance at 210-220$;
• Critical threshold at 240$.

Currently at 195$, the SOL price is walking a tightrope. To break the downward trend, it needs to regain 210$. Otherwise, sellers could take over and aim for a return to 190$.

Despite the storm, Solana has not said its last word. Its growing adoption and the prospect of an ETF could reignite the flame. VanEck’s optimism suggests an ambitious target: $520 this year. It remains to be seen if SOL can reinvent itself… or get bogged down.