Solana Price Drops 5% Amid Declining DEX Volume, Raising Concerns of Further Losses

Highlights:

• Solana’s price fell 5% to $165.09, with a market cap of $78 billion and trading volume at $3.4 billion.
• SOL is testing support at $166.44, with an oversold RSI suggesting a possible rebound.
• A bounce could target the 200 SMA at $173.82, but failing support may lead to $156.74.

The Solana price plunged 5% in the last 24 hours to trade at $165.09 as of 4 a.m. EST, driven by a 4% drop in trading volume to $3.4 billion. Now, the market capitalization stands at $78 billion.

The altcoin had been rising alongside Bitcoin (BTC), but recent corrections raise concerns about further losses. A significant decline in Solana’s DEX volume—from $13.3 billion in mid-October to $1.8 billion by the end of the month—could be contributing to this weakness. This decrease might suggest reduced interest in Solana’s ecosystem, which can negatively impact SOL’s price. Despite this, Solana still leads in DEX volume compared to other blockchains, with Ethereum close behind.

Solana Statistics

• Solana price: $165.09
• Market capitalization: $78 billion
• Trading volume: $3.4 billion
• Circulating supply: 470 million
• Total supply: 586 million

Solana Continues May Continue the Uptrend

The SOL/USDT chart shows a steady upward trend beginning in early October, with a sequence of higher highs and lows. Mid-October saw a breakout from a consolidation phase, which led to a significant price rally, indicating a shift from a sideways movement to a strong bullish momentum.

Toward the end of October, the price hit resistance. It formed a “Resistance Top” around the 180 level, signaling that upward momentum was weakening as selling pressure increased at this point. Currently, the price has retraced to a support level of around 166.44, a critical point that could either hold and lead to a rebound or, if broken, suggest further downside potential.

The 50-period SMA (around 156.74) and the 200-period SMA (around 173.82)—show that the medium-term trend remains bullish, with the 50 SMA still above the 200 SMA. However, a bearish crossover could occur if the price fails to bounce from the current support, indicating a possible trend reversal.

Solana Price Tests Key Support Level at $166.44 with Potential for Rebound

A “potential rebound after the fall” annotation suggests this support level could act as a base for an upward move, potentially bringing the price back toward the resistance levels near the 200 SMA (around 173.82) or even retesting the recent highs around 180 if momentum returns.

The RSI indicator is currently at 31.87, close to the oversold level of 30. This suggests the Solana price is nearing oversold conditions, which could attract buyers and increase rebound chances. If the RSI begins to move upward from this level, it could confirm a bullish reversal, supporting a price bounce from the current support level.

SOL/USDT is in a correction phase after peaking around 180. The price tests a key support level at 166.44, and the oversold RSI suggests a possible rebound. If the support holds, a bounce could lead the price toward the 200 SMA, around 173.82 or higher.

However, a deeper correction toward the 50 SMA at 156.74 may be likely if the support level fails. Traders might wait for further confirmation, such as an RSI uptick or a price breakout above the 200 SMA, to validate a potential recovery.