Solana (SOL) demand has decreased: Price may be suppressed!

Solana’s ($SOL ) total locked value (TVL) has fallen to its lowest level this month.

Since the beginning of December, over $1 billion worth of value has been withdrawn from Solana’s DeFi ecosystem. This sharp decline in TVL is due to the decrease in daily active addresses on the network. The bearish trend of the market and the fall of the memecoin trend have dealt a blow to the Solana network.

According to DeFiLlama data, Solana’s total locked value (TVL) currently stands at $8.01 billion. According to current data, $1.1 billion has exited the ecosystem, a 12 percent decrease since December 1. The network’s leading #DeFi protocol, Jito, was particularly affected by this decline, recording a 28 percent decrease in TVL compared to last month.

When looking at SOL’s daily chart, the negative Chaikin Money Flow (CMF) data confirming the decrease in demand is striking. As of writing, this indicator is at -0.04. CMF measures the accumulation or distribution of an asset in a certain period and combines price and volume data.

A negative value of CMF indicates that there is more distribution (selling pressure) in the market than accumulation (buying pressure). This indicates that the price decline will continue. If the selling pressure continues for SOL, the price could fall to $168.83.

However, factors such as the market turning upwards or the memecoin trend starting again will push the price up. In such a scenario, the $200 band can be targeted.