- Solana (SOL) is at a critical $150 support level as declining DEX volumes and a bearish “death cross” raise the risk of a deeper drop toward $115.
- However, strong buy interest at current levels could trigger a rebound to $160 if the support holds during the U.S. trading session.
Solana (SOL) is showing signs of potential weakness as it navigates a critical support level, with broader turbulence in its meme coin ecosystem raising red flags for investors.
After a parabolic rally in May, meme coins on the Solana network—including once-hot names like Fartcoin (FARTCOIN) and dogwifhat (WIF)—have sharply reversed. FARTCOIN is down over 15% in the past 24 hours, and WIF isn’t far behind with a 9% decline. The fading hype has triggered a notable drop in decentralized exchange (DEX) activity on Solana, with trading volumes falling for the fourth consecutive week. According to DeFi Llama, volumes slipped another 22% in just the past 7 days.
Also read: Bitcoin Whales Are Selling: Profit-Taking Surges as BTC Faces Potential Market Top
This decline in DEX volume suggests caution may be spreading across the Solana ecosystem. In highly leveraged markets, even modest drops can trigger massive long liquidations, and that’s exactly what traders fear now.
From a technical perspective, SOL has recently formed a bearish double-top at the $180 resistance level. This pattern, combined with the emergence of a dreaded “death cross” on the daily chart—where short-term moving averages fall below long-term ones—signals a potential trend reversal. Historically, such crossovers have led to steep drops, with the last one plunging SOL 37% to $107.
If current support at $150 fails to hold, SOL could break its bullish structure and tumble toward the $115–$120 range. Still, on the hourly chart, SOL has repeatedly bounced off the $150–$152 zone, suggesting strong buying interest. Should this support hold, the next upside target would be $160—right near the 200-period EMA and a psychological resistance level.
With the U.S. session looming, traders are watching closely. Will SOL defend its $150 fortress or face a deeper correction? The coming hours could be decisive in determining the short-term trend.