Solana News: SOL Faces Resistance, Drops but Shows Signs of Overselling

In the latest development in the cryptocurrency market, Solana (SOL) has encountered significant resistance and experienced a notable drop in price. However, technical indicators suggest that the asset may be oversold, hinting at a potential rebound. Here`s a closer look at what`s happening with SOL.

Solana (SOL) Faces Key Resistance, Drops to $132

Solana (SOL) is struggling to break out above $155.28 resistance. The cryptocurrency dropped to $132 as Bitcoin`s (BTC) decline below $90,000 sparked widespread selling. Whale investors have been offloading SOL, with 135 addresses reducing holdings in the past month. The asset is currently trading at $139.78, marking a 12.30% drop in the past 24 hours. The RSI at 25 suggests oversold conditions, hinting at a possible rebound.

Clanker Ecosystem Update and Market Volatility

Last month, we examined the emerging Clanker ecosystem. However, the market crashed shortly after, with CLANKER dropping to $15 ($15M mkt cap) from $55 at the time of the report. The Base/Solana/Memecoin environment has undergone significant changes. VIRTUAL has deployed on Solana without a Coinbase listing, while Coinbase`s surprise listing of VVV has raised questions about its listing processes and handling of the Base ecosystem. Celeb coins and the LA vape cabal have revealed the exploitative nature of the Solana market. Pumpfun activity has declined but remains higher than competitors. SOL and SOL memes have been severely punished, and discourse appears skewed against Solana.

Pump.fun Said to Be Ditching Raydium, Launching Own AMM

Crypto’s most lucrative tech marriage appears headed for a divorce. Presently, the Solana memecoin launchpad Pump.fun migrates tokens with sufficient liquidity to trade on Raydium, a Solana-based automated market maker. The so-called graduation mechanism has proven very profitable for Raydium: Pump.fun pools accounted for 36% of the DEX’s $154 million in 2024 swap revenue. That looks set to change, as an amm.pump.fun URL recently went online, and evidence suggests that Pump.fun was testing liquidity pools for its own AMM. Raydium’s token is down some 40% since Sunday as investors respond to a looming dent in the protocol’s revenue.

Solana’s Wild Ride: From Scandal to Market Jolt

Solana’s token, SOL, has plummeted over 50%, currently priced at $144, far from its January high of $293. The collapse of the Libra meme token, linked to Solana, triggered major disruptions, losing 90% of its value and involving Argentine President Javier Milei in controversies. Decentralized exchange activity on Solana has significantly decreased, with trading volumes at a five-week low amid dwindling trust. Despite setbacks, companies like Franklin Templeton and Grayscale are exploring ETFs based on Solana’s potential SEC approval.