3 days ago
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TLDR
- SOL has been struggling to reclaim the $150 level for the past three weeks, facing an 8% rejection after briefly touching $147 on March 25.
- Solana’s DApp revenues have dropped from $23.7 million to $12 million in just two weeks, while chain fees fell from $6.6 million to $3.6 million.
- Technical analysis shows SOL forming a bearish falling wedge pattern with potential for a 12% drop to $120 if it breaks below the $136 support level.
- Despite bearish indicators including the TD Sequential showing a sell signal, intraday traders are heavily positioned on the long side with $167 million in long positions.
- Solana has lost its dominant position in DEX volumes to BNB Chain despite having 34% more total value locked.
Solana’s native token SOL is facing ongoing resistance at the $150 price level. The cryptocurrency experienced a sharp 8% rejection after briefly touching $147 on March 25. This pattern has persisted for three weeks now.
The rejection comes amid declining on-chain activity for the Solana network. Many traders are wondering if the bull market that was fueled by memecoin speculation and artificial intelligence sectors has reached its end.
Some market watchers believe SOL could still benefit from future developments. These include a potential spot exchange-traded fund (ETF) approval in the United States. The expansion of tokenized real-world assets on the Solana network is another possible catalyst.
Nikita Bier, co-founder of TBH and Gas startups, remains optimistic about Solana’s future. He believes the network “has the fundamental building blocks for something to break out on mobile.” Bier points to Solana’s streamlined onboarding experience for mobile users as a key advantage.
While the jury is not out yet, Solana has the fundamental building blocks for something to break out on mobile and certainly many apps are making headway.
So today I’m joining @Solana as an advisor to help select companies launch & grow their apps.
For a couple years I've been…
— Nikita Bier (@nikitabier) March 25, 2025
The memecoin boom introduced millions of new users to Web3 wallets and decentralized applications. However, as the memecoin mania faded, on-chain volumes have plunged. This decline has made investors question whether SOL can return to levels above $150.
Solana is also facing growing competition from other blockchains. This competition has added to the pressure on SOL’s price. Market disappointment followed the realization that the US government would not purchase altcoins for its strategic reserve.
On March 6, President Trump signed a bill allowing the US Treasury to acquire Bitcoin. The legislation mentioned that altcoins in government possession could be strategically sold. There was no specific mention of Solana or any other altcoin in the Digital Asset Stockpile executive order.
The Solana ecosystem extends beyond memecoin trading and token launchpads. Total value locked (TVL) has grown across liquid staking, collateralized lending, synthetic assets, and yield platforms. Despite this growth, Solana’s fees and DApp revenues have continued to decline.
Recent data shows Solana’s DApp revenues totaled $12 million in the seven days leading up to March 24. This represents a sharp decline from $23.7 million just two weeks earlier. Similarly, base layer fees reached $3.6 million, down from $6.6 million in early March.
Solana has lost its position as the dominant network in decentralized exchange (DEX) volumes. BNB Chain has surged to the top spot, despite having 34% less TVL than Solana. From October 2024 to February 2025, Solana dominated the DEX industry but has recently lost ground to Ethereum and BNB Chain.
Technical Analysis
Technical analysis indicates SOL has formed a bearish falling wedge pattern. This pattern is similar to what Bitcoin is currently showing. At press time, SOL was trading near $137.5, reflecting a 4.76% price drop in the past 24 hours.
The price drop has brought SOL to the neckline of a bearish head and shoulders pattern. The neckline sits at around $136. Technical analysts suggest that if SOL closes a four-hour candle below $136, it could drop by 12%, reaching $120 in the coming days.
Solana PriceSOL has also faced rejection from a descending trendline that has acted as resistance since January 2025. This rejection, combined with the formation of a bearish engulfing candlestick pattern, strengthens the bearish outlook.
However, intraday traders appear to be betting against this bearish sentiment. Data from Coinglass reveals that traders hold $167 million worth of long positions at the $135 level. Meanwhile, $140 is another level where traders have built $83 million worth of short positions.
The bearish outlook could change if Solana breaks above the descending trendline. A daily candle close above $147.50 could potentially lead to a 22% rise, targeting $180 in the future.
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