Solana slips on meme coin mayhem yet charts signal a possible comeback

The price of Solana plunged, underscoring deeper turmoil in its ecosystem, as weakness in meme coin markets, DeFi activity, and stablecoin transactions converge to pressure the once high-flying blockchain. With SOL shedding over a quarter of its value since May and its broader network indicators sharply deteriorating, the sell-off highlights how speculative mania around meme tokens has bled into Solana’s fundamentals. Still, technical signals offer a glimmer of optimism—if buyers return soon. Solana dropped to $140, its lowest level since April 22, erasing over $22 billion in value as the market capitalization fell from $96 billion on May 23 to $74 billion. SOL’s retreat has coincided with the recent dive of Solana meme coins, which have erased billions of value. CoinGecko data shows that these meme coins have a market capitalization of $9.29 billion, down from over $30 billion in January to $15 billion in May. In the past seven days, most Solana meme coins have dived by double digits. Fartcoin ( FARTCOIN ) has dropped by 25% in this period, while Popcat ( POPCAT ) and Gigachad ( GIGA ) have fallen by over 20%. You might also like: Staked ETH eclipses 35m as crypto reserves fuel supply squeeze The ongoing Solana meme coin retreat has negatively affected its ecosystem. For example, DeFi Llama data show that the transaction volume in its decentralized exchange protocols has dropped to $46 billion in June, down from $97 billion in May and $262 billion in January. Meanwhile, Solana’s stablecoin network has deteriorated this month. Artemis data shows that the stablecoin transaction volume has dropped by over 68% in the last 30 days to $179.5 billion. The number of stablecoin transactions has plunged by 37%, while addresses have fallen by 20% to 3.2 million. SOL price analysis as a bullish flag forms Solana price chart | Source: crypto.news The daily chart shows that Solana price has tumbled from $187 in May to $140 today, June 21. The 50-day and 100-day moving averages have formed a mini death cross pattern, often leading to more downside. It has also dropped below the 23.6% Fibonacci Retracement, while the Relative Strength Index and the MACD have pointed downwards, suggesting further retreat. On the positive side, Solana has formed a bullish flag pattern, consisting of a vertical line and a descending channel. Therefore, there is hope that SOL price will bounce back in the next few weeks. Such a rebound will be confirmed if it rises above the 100-day moving average at $156, which coincides with the upper side of the flag channel. Read more: Solana highlights 3,200 active devs, $1b+ app revenue for second straight quarter

Source: crypto.news