Cryptocurrency Solana experiences a dip, reaching its lowest point for the month, as hype around memecoins wanes.
Solana's native token, SOL, has experienced a steep four-day decline, dropping nearly 18% from its May highs, as the hype surrounding meme coins within its ecosystem begins to dissipate.
This sell-off has resulted in the combined market cap of Solana's meme assets — including Dogwifhat (WIF), SPX6900 (SPX), and Popcat (POPCAT) — shedding billions in value in a matter of days. Once boasting a combined market cap north of $15 billion, these meme coins are now valued at $10 billion.
The broader sell-off mirrors a risk-averse shift in the cryptocurrency market, driven by geopolitical tensions and technical breakdowns, leaving doubts about the remaining momentum of Solana's meme-fueled surge.
Solana dropped to a low of $153.90, down 17.6% from its May highs, potentially entering a technical correction. The decline in Solana meme coins' market capitalization — once over $15 billion mid-month — follows a period of profit-taking, with most of them surging over 100% from their April lows.
Dogwifhat's price plummeted by 20% in the past 24 hours, while SPX6900 (SPX) fell by 18%, as predicted. Other top Solana meme coins like Fartcoin, Pudgy Penguins, and Popcat have dropped by over 20% in the same period.
This ongoing Solana meme coin sell-off has also affected its ecosystem. For instance, the volume handled by protocols within its DEX ecosystem has declined in the past few days, standing at $2.4 billion in the last 24 hours — which is lower than Ethereum and BSC's $2.98 billion and $12.1 billion, respectively.
Regarding Solana's price technical analysis, the daily chart shows Solana dropping sharply from $185 on May 23 to $154. It has moved below the 38.2% Fibonacci Retracement level, along with other bearish indicators, suggesting further declines. The initial target is the 23.6% retracement point at $140, down 8.50% from the current level.
Simultaneously, Shiba Inu prices have dropped as whales sell and the burn rate has slowed. The volatility and hype surrounding meme coins, their high susceptibility to market sentiment, and the potential for further declines remain key considerations for investors.
While Solana's meme coin sell-off reflects broader market trends and volatility, the ecosystem remains robust due to its technical advantages and diverse range of projects it hosts.
- Despite the steep decline of Solana's native token, SOL, by nearly 18%, the overall crypto market is experiencing a risk-averse shift, driven by geopolitical tensions and technical breakdowns.
- Solana's meme assets, including Dogwifhat, SPX6900, and Popcat, have seen their combined market cap drop from over $15 billion to $10 billion in a matter of days, due to profit-taking and the dissipating hype around meme coins.
- The decline in Solana meme coins' market capitalization has also affected the volume handled by protocols within its DEX ecosystem, which currently stands at $2.4 billion in the last 24 hours, lower than Ethereum and BSC's volumes.
- Other top Solana meme coins like Fartcoin, Pudgy Penguins, and Dogwifhat have dropped by over 20% in the past few days, while SPX6900 fell by 18%.
- Shiba Inu prices have also dropped due to increased selling by whales and a slowed burn rate, raising concerns about the potential for further declines in the meme coin market.
- While Solana's meme coin sell-off reflects broader market trends and volatility, its ecosystem remains robust due to its technical advantages and diverse range of projects it hosts.
