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Solana currency price falls to $100 support level... Is this a buying opportunity?

decreased Solana coin price SOL 13% in the last seven days. At a time when most alternative digital currencies have shown positive dynamics, we mention the Ethereum (ETH) currency here.Binance coin BNB Which increased by 5% and 5% respectively. As a result I retreated Solana coin SOL In fifth place by market value after Binance coin BNB.

Raise questions about the future of digital currency and whether the strong upward momentum we have witnessed in recent months has passed.

Several factors contributed to this decline, including a decline in overall demand for Solana network tokens, a decline in the performance of SPL tokens on the Solana network, and a noticeable decline in user activity on the network.

Declining interest in Solana

One factor contributing to Solana's poor performance is the decline in demand for its once popular distributions. These transactions attracted new investors to the network and increased the price of SOL. But as the pace of distributions has slowed, many investors have lost enthusiasm for Solana.

Poor performance codes SPL checks network activity

Additionally, SPL tokens, the digital currencies that operate on the Solana network, have dropped significantly in value. This includes tokens such as Jito, Jupiter and Dogwifhat, which have fallen more than 15% in the past week.

In addition, user activity on the Solana network has decreased significantly. Where did he fall Number of active addresses Online about 30% in recent weeks. From a peak of 1.02 million addresses to 691,000 addresses in recent weeks.
Trading volume also decreased by 20%. This decline in activity indicates that actual demand for widespread use of Solana applications may be weak.

Positive changes despite difficulties

It wasn't all bad news for Solana this week, however. Solana announced a new partnership With Filecoin, the leading decentralized storage network. This partnership aims to address the availability of historical data on the Solana network, which has been a barrier for some users.

There is also a demand for the use Decentralized Finance (DeFi) Applications) online Solana continues to grow. For example, the decentralized exchange Raydium is seeing an increase in the number of active users, as is the NFT marketplace Magic Eden. This indicates continued interest in using Solana applications despite the challenges they face.

The amount of SOL deposited in network applications, as measured by Total Value Locked (TVL), rose to $37.7 million on February 17, the highest level since November 2022. It's important to note that the current $36.3 million in TVL represents a 13.5% increase from the previous month. , indicating an increase in overall demand for SOL, regardless of expectations regarding free distribution.

Moreover, this figure has reached Solana coin SOL According to StakeRewards, the participation rate in the network verification process as of February 21 was 67.3%.

An increase in TVL and rates usually indicates less selling pressure in the short term, meaning holders are not interested despite the recent price correction.

Technical analysis of the Solana coin price

Solana SOL coin daily chart
Solana SOL coin daily chart

Technically, kickbacks are in Solana coin price SOL Although it is contrary to the market trend, it remains within the normal price correction range. As the price is still above the $100 support level. It consists of previous peaks as well as the 23.6% Fibonacci retracement level.

The next support level is at the 38.2% Fibonacci retracement level at $82.

Since the overall trend is up, any pullbacks could present a good buying opportunity at the support levels shown. Consistent with risk management strategy and objectives.

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