Solana Price Struggles as Meme Coin Volume Dries Up

Solana (SOL) price continued to lag alongside other majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). The competitive smart contracts token suffered another setback under $150 during the weekend and now seeks immediate support at $140.

Solana Price Market Movers: SOL Record Fund Outflows, Meme Coin Volume Tumbles

• Solana price recovery depends on the bulls’ ability to defend $140 support to beat the pressure emanating from record asset fund outflow, according to the latest CoinShares report. Digital asset investment products witnessed shallow inflows summing up to $30 million as investors adjusted their portfolios amid speculation that the Federal Reserve was unlikely to cut interest rates by 50 basis points in September.
• While Bitcoin and Ethereum experienced inflows of $42 million and $4.2 million, Solana led the perk on the opposite end with a staggering $39 million in outflows. Based on the report, this marked “the largest (outflow) on record, as it (SOL) faced a sharp decline in trading volumes of meme coins, on which it heavily relies.”

• Meme coins in the Solana ecosystem show no signs of immediate recovery, especially with CoinGecko highlighting a 5.7% total decline in the last 24 hours. Decreasing trading volume to marginally above $1 billion implies traders have low interest in Solana-based tokens. Dogwifhat (WIF), the largest token in the ecosystem, is down 6.4% to exchange at $1.35 as Bonk trades at $0.00001729. BOOK OF MEME hovered at $0.0066, down 3.5%.

The next few days will determine how cryptocurrencies will end the year. SOL price may increase momentum significantly if the Fed starts lowering interest rates. Solana price is expected to collect collect liquidity in the zone between $130 and $140 to accelerate recovery above $200.

SOL Price Analysis: Consolidating Before Breakout

Solana price holds above $140 support—a key level on the downside and below the 200-day Exponential Moving Average (EMA) at $152. Breaking below this level could mean a retest of the descending trend line toward $130. However, it would be wise to expect a major rebound as more traders DCA within the $10 support range.

The Relative Strength Index (RSI) holds below 50, insinuating sellers have the upper hand, but before switching over to short SOL, investors must ensure that a new trend is forming under $140.

Based on SOL price prediction, the simultaneous increase in SOL futures open interest by 1.55% to $2.2 billion and trading volume by 7% to $4.93 billion, according to Coinglass, suggests growing market interest.

This growth in OI and volume signals accumulating bullish sentiment or indecision among traders. While A breakout in either direction is possible, a bullish outcome can be anticipated if Solana price bounces off $140 support.

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John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.