The price of Solana has continued to decline this week and is on the brink of forming a death cross, as traders on Polymarket speculate it could plummet to $80 in the near future.
On Wednesday, Solana (SOL) was trading at $106, reflecting a drop of over 60% from its peak earlier in January.
A recent Polymarket survey, with more than $2 million in assets, suggests that SOL may fall to $80 by April, indicating a further 25% decrease from current prices. Approximately 35% of participants anticipate the token reaching that level, while only 15% predict it will rise to $150.
The Solana ecosystem has encountered challenges in recent months. Data shows that the total market capitalization of all memecoins on the network has decreased significantly, plummeting from over $30 billion in January to merely $5.6 billion today.
Moreover, Solana is no longer the leading player in the decentralized exchange sector, a title it held for several months. In the last 30 days, the total volume processed by protocols on the network reached $45 billion, which is below Ethereum’s $57.9 billion. Its leading DEX protocols include Orca, Meteora, Pump, and Raydium.
However, there are some encouraging developments. Janover, a company listed on NASDAQ, has begun accumulating SOL, aiming to become the “MicroStrategy of Solana.” Additionally, Blackrock, the largest asset manager, has recently increased its $1 billion BUIDL fund to encompass the Solana network.
Technical Analysis of Solana Price
Technical indicators suggest that further declines may be imminent in the coming weeks. On the daily chart, SOL has fallen from nearly $300 in January to just above $100 today. It has dipped below the 61.8% Fibonacci retracement level—often referred to as the “golden ratio,” where rebounds are typically expected to occur.
Currently, the SOL price has reached an oversold level on the Murrey Math Lines, and the Relative Strength Index has created a descending channel. The coin has breached the vital support level at $120, a threshold it had maintained since April of the previous year.
The Average Directional Index remains above 23, indicating that the existing downtrend is robust. Consequently, the price may keep decreasing, targeting the psychological level of $80. Should this level be breached, the next support is at $70, the 78.6% Fibonacci retracement level.
A rise above the 50% retracement point at $150 would negate the current bearish outlook.