Solana (SOL) Price Prediction: SOL Price Is About to Form a Death Cross Pattern, Pointing to More Downside

Solana (SOL) token has dived to $159, its lowest level since Nov. 6, and 46% from its highest level in February.

Solana (SOL) price has crashed to $159, its lowest level since Nov. 6, and 46% from its highest level in February.

This crash comes as the ecosystem faces major challenges amid the meme coin price weakness. The total market cap of all SOL meme coins has moved from $25 billion in January to $9.8 billion. Most highly popular tokens like Dogwifhat, Official Trump, and Pudgy Penguins have shed billions in value.

Solana’s internal metrics have also been affected by this trend. TokenTerminal data shows that the number of active users has dropped to 87.3 million, its lowest level since Octover 7. It has dropped from the November high of 137 million. This suggests that some Solana users have sold their tokens.

Solana’s revenue has also fallen below $1 million per day. It made $978,000 on February 14, down from this year’s peak of $44 million.

The decentralized exchange industry is also struggling as Solana meme coins plummet. Its DEX volume has dropped by 36% in the last seven days to $16.7 billion, lower than Ethereum’s $18.3 billion and BSC’s $16.9 billion.

Solana price analysis: SOL set for more downside

On the daily chart, we can see that the SOL price has been in a strong bearish trend after peaking at $295.28 on January 19. It formed a double-top-like chart pattern on the daily time frame at $263, and whose neckline was at $169, being the lowest swing on January 13. It has already dropped below that neckline, which suggests that bears have taken over the price action.

Solana has also formed a death cross pattern, which is formed when the 200-day and 50-day Weighted Moving Average cross each other on the daily chart. The Percentage Price Oscillator have moved downwards.

Therefore, the outlook for the SOL price is bearish, with the next point to watch being at $110, being the lowest swing in August last year. This target is about 30% down from the current level. A break above the $200 level will cancel the bearish outlook.