Solana Network Slowness Calls Attention to Problems

Solana is battling with the continuous correcting phase among the increasing volatility of cryptocurrencies. The SOL price trend is down to $171.09 with its fourth straight negative day.

Solana is putting vital support levels at danger with an intraday loss of 3.62%.Is the SOL price dropping to $135 with the rising supply pressure and recent Solana memecoin controversies? Let us find out.

Solana records many negative occurrences on the daily price chart. The SOL price trend has broke below the 200-day EMA line, the 61.80% Fibonacci barrier at $184, and a long-coming support trendline with its four consecutive bearish candles.

Having several breakdowns, the SOL price lately tested at $162.87 the 78.60% Fibonacci level. Solana is back over $170 now with a small retreat; the lower price rejection suggests a possible retest.

Rising the risk of a collapse, crypto expert Ali Martinez has pointed to many Solana network developments. First of all, since November, the overall volume passed across the Solana network has dropped noticeably.
Over the past few months it has dropped from $2 billion to barely $26 million. Moreover, the Solana network now has 8.4 million rather than 18.5 million active addresses.

This indicates a major slowing down in the Solana network and warns of a major crash should the demand fail to recover.

The lower price rejection in the candle of today supports the possibilities of a positive comeback. Still, the extreme overhead supply pressure close to the $180 supply zone will probably cause a post-retest reversal.

The post-retest surge in Solana is probably going to collapse beneath the $162 support level according to Fibonacci calculations. Under such circumstances, Solana's next support levels drop to $135 and the $100 psychological threshold.