Solana price has lost momentum in the past few weeks as a sense of fear has spread in the crypto industry. The SOL token retreated to a low of $177 on Monday morning, which was much lower than last month’s high of $209.97. So, is this the end of Solana’s bull run?
Solana is still gaining market share
Solana has been one of the best-performing cryptocurrencies since 2023. It has jumped by more than 1,245% from its lowest level in 2023, outperforming top coins like Avalanche, Bitcoin, and Ethereum.
That performance happened as the network continued gaining market share among users and developers because of its quick speeds and low transaction fees. Solana can process over 2,000 transactions per second (tps) while Ethereum can only handle less than 30.
At the same time, Solana’s transactions costs just a few cents. This explains why the network brings in less fees than Ethereum. According to TokenTerminal, Solana’s fees stand at $113 million this year while Ethereum has made over $1.12 billion.
Solana has been growing its market share this year. In Decentralized Finance (DeFi), it has become the second-biggest platform in the ecosystem after Ethereum. It has a total value locked (TVL) of over $10.2 billion, making it bigger than Solana, BNB, and Arbitrum.
The biggest Solana dApps in terms of TVL are the likes of Marinade Finance, Jito, Kamino, and Pyth Network. Most importantly, Solana has over $24 billion in bridged TVL and more than $3 billion in stablecoins.
Recently, Solana has become a major player in the DEX industry. Key networks like Jupiter, Raydium, and Orca have become the biggest DEX networks in the world. This growth is mostly because Solana meme coins have a substantial market share. The most notable ones are dogwifhat, Bonk, Book of Meme, and Cat in a Dogs World.
Meanwhile, Solana’s on-chain data shows that its growth is continuing, The number of new addresses in the network jumped by more than 28 million in March after soaring by 12.4 million a month earlier. Further, the total staked value stands at over $67 billion as investors take advantage of its high fees.
Solana price forecast
SOL price has pulled back sharply in the past few weeks as some investors take profits and as the fear and greed index has pulled back. On the daily chart, we see that the SOL token price has formed a double-top pattern, which is a popular bearish sign. Its neckline sits at $162.90.
Solana has remained above the 100-day Weighted Moving Average (WMA), which is a bullish sign. The Relative Strength Index (RSI) has retreated and moved to the neutral point at 50. Therefore, I suspect that Solana will likely retreat further in the coming days as bears target the key support at $162.
The bearish view will become invalid if the token rebounds and moves above the crucial resistance point at $204. If this happens, the next level to watch will be at $225.
