Solana (SOL) faces a critical juncture as it trades at its lowest levels since November 2024. The cryptocurrency has erased its post-election gains amid intense selling pressure from the meme coin sector.
Market Impact of Meme Coin Correction
The recent meme coin frenzy drove massive transaction volumes on Solana. But the hype has faded fast. SOL now trades at $173, just above crucial support at $170. The rapid speculation cycle has left the network vulnerable.
DEX volumes have declined significantly. Traders show hesitation to reinvest. Yet Solana’s core technology remains robust. The network continues to process transactions efficiently.
Technical Outlook
Crypto analyst Jelle identifies $185 as a key level to reclaim. This price point aligns with the 200-day moving average. A break above could trigger renewed bullish momentum.
The market structure suggests two possible scenarios:
- Bullish case: SOL reclaims $185, targeting $200
- Bearish case: Failure at $185 could see prices test $160
Three-day and weekly candle closes will provide important directional cues. Bulls must defend the $170 support to prevent deeper corrections.
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Market Sentiment
Investor sentiment remains fragile. The broader altcoin market faces uncertainty. Solana’s recovery depends on:
- Stabilization in the meme coin sector
- Return of institutional interest
- Successful defense of key support levels
The next few days will prove crucial for SOL’s trajectory. A sustained move above $185 could restore market confidence.
Tags: #Solana #SOL #CryptoTrading #TechnicalAnalysis #MemeCoins
Source: NewsBTC