Table of Contents
The Solana price is down today due to a significant decrease in network utilization and the overall decline in the cryptocurrency industry. One of the reasons that Solana’s price is down is the fact that Solana’s DEX volume has been declining for several weeks now. This has similarly impacted the sentiment in the larger crypto market where SOL is situated. Solana could once more test the support region at $140 again.
Solana has shed over 4% of its value today, and only two days after experiencing some peaks, hitting around $158 weekly high. This price decline is also attributed to various issues such as low transaction volume recorded at Solana network on the 16 and 17th of October. However, the general sentiment in the crypto market has also impacted SOL; the Bitcoin price dropped after the pump on Wednesday.
Why The Solana Price Is Down
SOL is 4.14% here today because the activity on the Solana network has decreased. According to DeFiLlama figures, DEX volume declined on Oct 16 and 17 to $1.69B and $1.68B respectively. On October 14, the network set its highest weekly DEX trade volume at $2.06 billion while Solana hit as high as $158.
Borrowing my belief from the everyday trading theory that states when more people use a network, the price of the coin involved goes up; on 16 and 17, DEX volume was lower because fewer users transacted on the network thus the price of the coin came crashing down. That means, an increase in volume results in an increase in price while a situation that enjoys low volume will have a lower price. The decline in Solana’s DEX volume happened a week after SOL surpassed ETH in the weekly and daily DEX trading volumes.
As expected, it can be seen that Ethereum has once again dethroned Solana in terms of the network transactions it currently supports. Within the last 24 hours, Ethereum has had a DEX volume of 1.7 billion dollars and Solana has had 1.6 billion dollars. However, the Solana price also seems to be lower today due to the general tone of the rest of the cryptocurrencies. Bitcoin price is currently in a retracement after running up to the week before. Other coins copy the BTC, so that also explains why SOL is undergoing its bearish run as well.
Looking At What Next For The Crypto’s Price
Solana price is forming the range with key and resistance zones mentioned by crypto analyst Crypto Patel in the X post. He also argued that the price had pulled back from the resistance at around $160 which could see the price drop towards the support level of around $140 for another touch. Bitcoin price if it continues to trace lower could revisit the $140 support for Solana price. Immediately before researching and writing this article, BTC could pull back to $63,300 if it does not rebound off the key support level of $66,780 once tested, as per crypto commentator Ali Martinez.
In the long run, everyone with their outlook on SOL looks positive, as other crypto analysts such as Eugene Ng Ah Sio share insights stating that SOL could again reach a new ATH $1,000.
