Why is Solana (SOL) price down today?

The native token of Solana, soil, is down 4% in the midst of minor corrections in the larger cryptography market.

Cointelegraph Markets Pro and TradingView data show Sol Trading at $ 137 after failing to maintain more than $ 140 on March 27.

Key factors that cause lower soil prices today include:

The decrease in network activity hurts at ground price

The drop in soil prices today is preceded by a drop in the total locked value (TVL) in its DEFI applications.

Key points:

• Solana’s TVL has experienced a downward trend since mid-January.

• This metric fell 45.5% against 12.1 billion dollars on January 19 to reach four months of $ 6.4 billion on March 11.

• This drop in TVL occurred in tandem with the decrease in soil price, which is more than 53% over the same period.

• Although this metric had a slight increase to $ 7.2 billion on March 25, it is now down 2% in the last three days.

• The drop in soil prices on March 27 was also preceded by a sharp decrease in the network’s activity.

• The graph below shows the volume of Solana’s trading DEX – The total value of cryptographic transactions executed on decentralized platforms on Solana’s blockchain – went from a summit of $ 39.9 billion on January 19 at the current level of $ 2.3 billion.

The drop in Solana in the TVL and Dex trading volume reduces the demand for a soil token, lowering prices.

Will the ground price drop to $ 55?

Sol is negotiated at 56% below its summit of all time of about $ 295, established on January 19, and the technical configuration shows that Altcoin could drop more to $ 50.

Key points:

• Sol is negotiated in a model of bear flag, indicating the possibility of continuing with the momentum if the key support levels do not hold.

• The bear flag developed after Solana’s rejection of the level of resistance of $ 270 to a hollow of 12 months of $ 112 between January 19 and March 11.

• Consolidation in the bear flag has resolution exchanges in an ascending parallel channel, with the latest levels of critical test support, including the lower limit of the flag at $ 132.

• A ventilation of this level could trigger another price crash.

• The objective of lowering the bear flag, derived from the height of the previous decline, is about $ 55, which represents a 60% drop in the current price.

However, the popular analyst of Crypto Jelle remains optimistic about Solana’s ability to recover from the downward trend and a prolonged recovery.

Jelle declared that Sol had made a solid recovery from the low beach at $ 112, but admitted that the price had “a lot of land to recover”.

As Cointelegraph has reported, Sol has the potential to recover as long as the TVL and the costs of its Fliop Haussiers network, in particular in comparison with the competitors.

Popular Trader Flash said that once the Sol / USD pair confirms a corner model falling within the daily time, it could reach 71% of current levels at $ 265.

This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.