Solana Price Drops as SOL Revenue Slips 93% – Can SOL Rebound Above $186 Mark?

Highlights:

• SOL has plunged 8% in the past week to a multi-month low of $124.
• Solana’s revenue has dropped 93% from its January peak due to declining memecoin activity.
• DeFi TVL on Solana has plunged nearly 50%, reflecting lower on-chain engagement.

The Solana price has plunged 8% in the past 7 days to a multi-month low of $124, struggling amid bearish market sentiment. The weekly Solana network’s revenue shows it saw its highest-ever record in January, with $55 million. This, however, has been lowered by almost 93% since then, as Solana blockchain’s past week’s revenue plunged to $4 million. 

This trend is in relation to Solana’s revenue statistics, as Solana’s decentralized application revenue has fallen, reaching $32 million in the past week. This marks an 86% decrease, with $238 million in revenue in January.

The Total Value Locked (TVL) on Solana currently stands at $6.4 billion. Solana’s total value locked (TVL) has dropped by half from its January all-time high of approximately $12 billion. The total memecoin interest drop during the past two months resulted in this general market downturn.

According to a VanEck report, Solana generates 80% of its revenue through the Pump.fun meme coins. In the last days of January, the Pump.fun platform’s revenue hit $15 million daily. The remittance industry saw its value decrease by 95% to $800,000 following the decline in the popularity of memecoin.

Solana Price Outlook

The Solana price 3-hour chart shows a downtrend channel, with the price currently trading near the lower boundary of the descending channel. The 50-day MA shows a looming sell signal below the 200-day MA. Meanwhile, the price attempts to recover but remains below both moving averages, suggesting that sellers still have control. 

At the current level of $124.34, SOL is showing signs of a potential short-term rebound, but the structure remains bearish. If the price successfully breaks above the 200-day MA at $183.83 and holds, it could signal a bullish reversal, with the next resistance sitting at $186.22, aligning with the 50-day MA. However, failure to reclaim this moving average may result in a continued downward movement, possibly retesting the lower channel boundary near $117 before reaching the key supports at $113, $110, and $99.

Can SOL Rebound Above Moving Averages?

Solana’s price shows encouraging signs of recovery, with technical indicators hinting at a potential move toward the $150 barrier. The bearish momentum on the RSI, coupled with a slight price increase, suggests that sellers could be losing control.

However, with the broader crypto market lacking a strong uptrend, Solana will need sustained buying pressure to break through resistance levels. A steady climb with increasing volume could set the stage for Solana’s price to the $186 mark, though a lack of momentum may lead to consolidation before any significant move.

On the other hand, if $117 fails to hold as support, SOL could experience further downside pressure, potentially leading to a broader downtrend. This would invalidate the current upward trajectory and open the door for more bearish movement toward the critical supports at $109. Traders should watch for volume spikes and price action signals around the support zone to confirm a potential reversal or breakdown.