Solana (SOL) Market Trends Show SOL and Memecoins Facing Significant Challenges

The volatile cryptocurrency market has also impacted the sixth largest cryptocurrency, SOL. Over the past week, the price of SOL has dropped by 20%, currently standing at $119.95. Market experts predict that by the end of March, SOL could fall to $100. Similarly, assets in the memecoin category are also experiencing significant declines, with some tokens down 87% since their peak in January. Despite the short-term risks, experts believe SOL may recover in the long term.

The Sharp Decline of SOL and Future Predictions

The decline in SOL's value is seen as a reflection of the overall negative sentiment in the cryptocurrency market. Earlier this week, SOL fell to $115.25, and it is currently trading at around $119.95. Experts say this downward trend could continue until the end of March, with the potential to test the $100 level. However, some analysts believe this decline may be temporary.

Renowned analyst Crypto Patel stated that SOL might drop to $80 in the coming months before rebounding and targeting $500. This prediction is based on potential improvements in the U.S. Securities and Exchange Commission (SEC) regulation of cryptocurrency funds. According to a report from JPMorgan, the approval of exchange-traded funds based on SOL could attract billions of dollars in new investments.

The Collapse of Memecoins and User Loss

Memecoins have recently faced issues of devaluation and user loss. Tokens related to former U.S. President Donald Trump have devalued by 87% since their peak in January. This decline is attributed to scandals that have shaken investor confidence in the project. The daily active users on the popular memecoin platform Pump.fun have dropped from 390,000 in February to 169,000.

The waning interest in memecoins among users indicates a reduction in market speculation. Some experts emphasize that investors are now more inclined towards more stable projects. Additionally, the collapse of the memecoin market has undermined overall confidence in the cryptocurrency industry.