Solana Faces Heavy Resistance at $200
Solana price is stuck in a downward trajectory, with strong resistance forming around the $200 mark. Bulls need to push past this level to regain momentum, but the odds appear stacked against them. Data from Coinglass shows that short leverage positions in Solana exceed $551 million, far outweighing long positions at $253 million. This imbalance highlights the market’s bearish stance, with traders betting on further downside.
Solana Liquidation Map. Source: CoinglassIf bears capitalize on weak support levels, Solana could slide toward $160.8, which remains the next critical demand zone. Without a surge in buying interest, SOL’s path to recovery remains uncertain. The fading meme coin hype, which once fueled Solana’s explosive rally, has now turned into a major liability, further dampening investor confidence.
Solana’s DeFi Ecosystem Booms Despite Price Struggles
Despite the bearish price action, Solana’s decentralized finance (DeFi) ecosystem is expanding rapidly. Data from DeFi Llama shows that the network has attracted $3.2 billion in stablecoin inflows, marking a 37.3% increase in just 50 days.
Major protocols like Jito and Jupiter have experienced exponential growth, with Jito’s total value locked (TVL) skyrocketing from $700 million to $2.8 billion over the past year. Jupiter’s TVL has surged from $210 million to $2.53 billion, a staggering 1,100% jump. Meanwhile, Raydium, Solana’s largest decentralized exchange, recorded a sharp increase in trading volumes, reaching $61 billion in Dec. 2024.
Solana price is at a critical juncture. Holding above $170 is crucial for bulls to regain control, but the lack of strong buying interest raises red flags. A decisive break above $185 could restore confidence and push SOL back toward $200. However, if selling pressure continues, a drop to $160 or lower remains a real possibility.
The post Solana Price Battles to Hold $170—More Pain Ahead? appeared first on Coinchapter.
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