Solana Teeters At $126 Support: Could A Stunning 30% Drop Be Next?

Secret Insights: Solana price reveals early caution signs as traders react to a crucial technical breakdown. The $126 level has acted as significant support over the past 2 months and is now under extreme pressure.

Key Insights: Solana price hovers at $134 as it tests crucial $126 support; a breakdown may trigger a 30% drop to $85. Solana stablecoin market cap fell $2.5 B in 7 weeks, signifying reduced network activity and token demand. $13.14 M in long liquidations in 24h highlights weak bullish conviction as traders face increasing downside pressure. Solana price shows early signs as traders react to a key technical breakdown. The $126 level has served as significant support over the previous 2 months and is now under intense pressure.

Market analysts observe a rounding top pattern as the price trades around $134.19 on June 23. If this level fails, projections show a potential drop of up to 30%. This could send the Solana price below the $100 mark.

Decrease in Network Activity Supports Bearish Solana Price Outlook. Blockchain data also shows weakening activity across the Solana community, reinforcing the technical signals. According to DeFiLlama, the total market cap of stablecoins on Solana has fallen significantly in the past 7 weeks. It decreased from $13.13 Billion to $10.63 Billion. This represents a $2.5 billion decrease in network liquidity. At the same time, the number of decentralized finance (DeFi) users on Solana has decreased sharply. The total dropped from about 6 million on June 2 to under 3 million at the time of writing. A falling user base reduces the demand for SOL tokens. These are used to pay transaction fees and interact with DeFi protocols.

Solana TVL in DeFi. Secret Insights: Solana price hovers at $134 as it tests crucial $126 support; a breakdown may trigger a 30% drop to $85. This could send the Solana price below the $100 mark. Decrease in Network Activity Supports Bearish Solana Price Outlook. Blockchain data also shows weakening activity across the Solana ecosystem, strengthening the technical signals. Source: DeFiLlama This decrease in network usage adds pressure to the Solana price. Lower on-chain activity often leads to lower transaction volumes, which can cause a decrease in token demand. If this trend continues, Solana may struggle to regain previous support zones or move back toward the $187 high.

Solana Price Faces Bearish Sentiment from Options and futures Traders. Recent data from the derivatives market supports the cautious outlook for the Solana price. This positioning could backfire if the Solana price falls, causing many long positions to be liquidated. Solana Price Drops as Rounding Top Pattern Gains Traction. According to TradingView, the Solana price is flashing a bearish reversal signal.