#BNBATH880 Top Reasons for the Decline in Solana (SOL) Price
1. Macroeconomic Pressures – Changes in Monetary Policy
Recent American data regarding inflation and interest rates has caused a wave of decline in cryptocurrencies in general, including SOL, which lost about 3%–5% during the recent market tensions (Barron's).
2. Clear Negative Technical Patterns on Charts
Double Top Pattern: Two peaks formed at $206 and $209, suggesting a potential decline to ~$161 if support at ~$183 or ~$175 is breached (BeInCrypto).
Technical Indicators (RSI and Ichimoku): RSI dropped to around 40, indicating weak demand, and SOL is trading below the “red cloud” of Ichimoku, reflecting bearish momentum (Cryptomus).
3. Decrease in Network Activity and DApps
The Solana network has seen a significant drop in usage:
Network fees declined by 73%.
Active users on DApps like Jito, Magic Eden, and Save decreased by 56%, 38%, and 42% respectively
Barron's