Why Is Solana (SOL) Price Down Today?

SOL’s performance over the last day has been accompanied by a leap in its trading volume, which has increased by 42% to $6.4 billion, asserting the intensity of the sell-side activity. This decrease in price and high trading activity have seen its total market capitalization drop to $61.45 billion, but according to data from CoinMarketCap, SOL still maintains its position as the fifth largest cryptocurrency. The Solana network has grown tremendously over the last year, shaking off the effects of the FTX collapse. The blockchain’s total value locked (TVL) has increased by 8,800% since November 2023.However, SOL’s latest price drop follows a decrease in onchain activity, as fewer users engage with the network, contributing to the decreasing momentum. From a technical standpoint, SOL's price decline is part of an extended technical correction that started on March 18, when it turned away from its multi-year high of $209. The SOL/USD pair has dropped by over 32% since.As of July 5, SOL was testing its multi-month horizontal support line of a descending triangle for a potential rebound toward the descending trendline at around $150—up 11% from the current price levels.Conversely, a break below the horizontal support line risks a decline toward the technical target of the descending triangle at $74. Such a move would represent a 45% decline from the current price.

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