Solana slides to monthly low as memecoin frenzy fizzles

After a euphoric surge that saw meme coins on the Solana blockchain skyrocket earlier this year, the hype is beginning to unravel. Solana’s native token, SOL , has dropped for four straight days—falling nearly 18% from its May highs—as meme coin valuations across its ecosystem collapse. Once riding high with a combined market cap north of $15 billion, Solana’s meme assets like Dogwifhat ( WIF ), SPX6900 (SPX), and Popcat ( POPCAT ) have shed billions in value in just days. The broader sell-off mirrors a risk-off shift in the crypto market, amplified by geopolitical tensions and technical breakdowns, casting doubt on how much steam is left in Solana’s meme-fueled momentum. Solana’s correction deepens Solana fell to a low of $153.90, down 17.6% from its highest level in May. If the sell-off continues, it may move into a technical correction. Solana meme coins have been some of the worst-affected as their market capitalization fell from over $15 billion mid-month to $10 billion. Dogwifhat price tumbled by 20% in the last 24 hours, while SPX6900 (SPX) fell by 18%, as we predicted . Other top Solana meme coins like Fartcoin ( FARTCOIN ), Pudgy Penguins, and Popcat have tumbled by over 20% in the same period. Solana meme coins chart | Source: CoinGecko The ongoing Solana meme coin sell-off has also affected its ecosystem. For example, the volume handled by protocols in its DEX ecosystem has tumbled in the past few days. The volume stood at $2.4 billion in the last 24 hours, lower than Ethereum and BSC $2.98 billion and $12.1 billion. Solana and meme coins in its ecosystem have tumbled because of profit-taking, as most of them were up by over 100% from their lowest levels in April. SOL price technical analysis The daily chart below shows that Solana has dropped sharply in the past few days, moving from $185 on May 23 to $154. It has moved below the 38.2% Fibonacci Retracement level. Solana price chart | Source: crypto.news The coin has also crashed below support at $159.45 and the neckline of the double-top pattern at $184.25. A double-top is one of the riskiest chart patterns in technical analysis. Solana has dropped below the 50-day Exponential Moving Average, while the Relative Strength Index and the MACD have all pointed downwards. Therefore, the coin will likely continue falling. The initial target is the 23.6% retracement point at $140, down 8.50% from the current level. If the coin rises above the double-top point at $185, more upside, potentially to $200, will be invalidated. Read more: Shiba Inu price crashes as whales sell, burn rate slows

Source: crypto.news