Solana price nears death cross as DEX volume jumps 46%

Solana has persisted in its downward trajectory, experiencing a decline for four successive days as the cryptocurrency market is dominated by losses.

On Thursday, Oct. 3, Solana (SOL), the fifth-largest cryptocurrency, dipped to $135, marking its lowest value in more than three weeks. The token has entered a local correction phase, dropping 16% from its peak last week.

This sell-off aligns with the ongoing downturn affecting many Solana meme coins. Dogwifhat (WIF) has seen a decline for three straight days. Other tokens such as Popcat (POPCAT), Cat in a Dog’s World (MEW), and Book of MEME (BOME) have all also retreated. As noted by CoinGecko, the combined market cap of all Solana meme tokens has decreased by 7%, settling at $7.8 billion.

Additional data reveals that Solana has been steadily increasing its market share within the decentralized exchange sector. As reported by DeFi Llama, the weekly trading volume in its ecosystem has surged by 46% to $9.25 billion, positioning it as the second-largest player after Ethereum, which facilitated token transactions worth $9.6 billion.

The majority of this growth can be attributed to Raydium, which saw its trading volume rise by 71% to $4.3 billion. It was followed by Orca, Phoenix, and Lifinity, which processed volumes of $3.1 billion, $933 million, and $734 million, respectively.

Moreover, Solana’s ecosystem is thriving, with the total value locked exceeding $5.06 billion, representing the highest level since 2022. Six prominent networks, including Jito, Kamino, Jupiter, Marinade, and Raydium, have each reached a total value locked (TVL) of $1 billion.

The current sell-off in Solana is largely attributed to escalating geopolitical tensions. According to a report by the NYT, Israel is contemplating the initiation of military action against Iran, which could potentially trigger inflation and compel central banks to reconsider interest rate cuts.

Potential Death Cross for Solana Price

The daily chart indicates that Solana’s price has been characterized by a series of lower highs and lower lows since March. It has established strong support at $121.65, a level it has struggled to breach since April 12.

Solana is nearing the 50% Fibonacci Retracement level, while the 200-day and 50-day Exponential Moving Averages are on the verge of forming a death cross. This formation may trigger further sell-offs, with an initial target set at $121.65. A breach below this point would confirm a bearish breakout and potentially lead to additional losses.