Solana price has dropped to a six-month low below $130 as sellers weigh on the price. Solana is currently trading at its lowest level since September 2024, with traders now concerned about a possible decline below $100. While historically low prices have often presented an opportunity to buy the dip and hence a rebound, below are the top three reasons why SOL price may fail to reach $200 this month.
Here’s Why Solana Price May Not Reach $200 This Month
Solana price today trades at $121 today after a drastic 9% drop in 24 hours as the crypto market crashed. In just one week, Solana has erased nearly $16 billion from its market capitalization, despite bullish news like SOL being included in a US digital assets stockpile. As Solana edges lower, here are the top 3 reasons why the price may fail to reach $200 in March 2025.
Looming Death Cross
One of the reasons why Solana price may not reach $200 this month is an approaching death cross. The 50-day SMA is nearing a bearish crossover with the 200-day SMA, which may increase the bearish momentum.
Solana price has also breached a critical support level of $124. If this support fails to hold, SOL price faces a drop towards $110, which could pave the way for sub-$100 levels. With buyers failing to defend support due to a lack of conviction in a recovery, SOL may not reach $200 in March 2025.
SOL/USDT: 1-day Chart
Meme Coin Activity on PumpFun Fades
The PumpFun platform played a major role in fuelling a Solana price rally earlier this year. However, this is no longer the case after a drastic decline in the total market cap of Solana meme coins as trader interest fades.
Data from Dune Analytics shows that meme coin activity on the launchpad peaked between December 2024 and January 2025. However, in February and March, the level of activity dropped significantly. As fewer developers and traders interact with PumpFun, it supports a bearish Solana price prediction.
PumpFun Monthly Volume
Declining Social Dominance Could Impact Solana Price
The level of social dominance around Solana has also plummeted to its lowest level in four months. This drop indicates that the engagement around SOL is diminishing as traders focus on other assets. This drop is contributing to reduced demand for the asset.
Solana Social Dominance
The reduced social buzz around SOL makes it harder for the altcoin to sustain a strong uptrend. Moreover, if retail traders are shifting their attention away from Solana, it can drain capital and liquidity from the altcoin, making it harder for it to rally.
Given these factors that show that bearish trends are still prevalent in Solana price, the altcoin could fail to make a recovery past $200 this month. Nevertheless, the approaching deadline of a spot SOL ETF could offer a brief relief rally.
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