Solana continued its downward trend, falling for four straight days as a sea of red swept through the cryptocurrency industry.
Solana (SOL), the fifth-largest cryptocurrency, fell to $135 on Thursday, October 3, its lowest level in more than three weeks. It also moved into a local correction, falling 16% from last week’s high.
The sell-off coincided with the ongoing decline of most Solana meme coins. The price of Dujoyfat (WIF) has fallen for the past three days in a row. Other tokens such as Popcat (POPCAT), Cat in a Dogs World (MEW), and Book of MEME (BOME) have all declined. according to Queen Gekkothe market cap of all Solana meme coins fell by 7% to $7.8 billion.
More data shows that Solana has continued to gain market share in the decentralized exchange industry. according to Davey’s callThe weekly volume transacted in its ecosystem rose 46% to $9.25 billion, making it the second-largest player after Ethereum, which processed tokens worth $9.6 billion.
Most of the gains were in radium, which rose 71% to $4.3 billion. They were followed by Orca, Phoenix, and Lifinity, which processed transactions worth $3.1 billion, $933 million, and $734 million, respectively.
In addition, the Solana ecosystem is performing well as the total value locked has risen to over $5.06 billion, the highest point since 2022. Six of the largest networks such as Jito, Kamino, Jupiter, Marinade, and Raydium have achieved $1 billion in TVL.
The ongoing sell-off in Solana is mostly due to rising geopolitical risks. New York Times I mentioned That Israel was considering waging war with Iran. Such a war would likely spark inflation, prompting central banks to slow their interest rate cuts.
Solana price could form a death cross
The daily chart shows that Solana price has formed a series of lower highs and lower lows since March. It also found strong support at $121.65, where it has struggled to move below since April 12.
Solana is approaching the 50% Fibonacci retracement level, while the 200 and 50-day EMAs are about to form a death cross. Such a formation would likely trigger further selling, with the initial target at $121.65. A break below this level will validate the downside breakout and lead to further downside.