Solana price nears death cross as weekly DEX volume rises 46%

Solana continued its bearish trend, falling for four consecutive days as a sea of ​​red engulfed the crypto industry.

The fifth-largest cryptocurrency, Solana (SOL), fell to $135 on Thursday, October 3, its lowest level in more than three weeks. It also entered a local correction, falling 16% from last week’s high.

This sell-off coincided with the ongoing decline of most Solana meme coins. Dogwifhat (WIF) has fallen for the last three days in a row. Other tokens such as Popcat (POPCAT), Cat in a dogs world (MEW) and Book of MEME (BOME) were withdrawn. According to CoinGecko, the market value of all Solana meme coins fell 7% to $7.8 billion.

More data shows that Solana continues to gain market share in the decentralized exchange industry. According to DeFi Llama, weekly volume processed in its ecosystem increased by 46% to $9.25 billion, making it the second largest player after Ethereum, which processed $9.6 billion worth of tokens.

Most of the gains were in Raydium, whose volume rose 71% to $4.3 billion. It was followed by Orca, Phoenix and Lifinity, which completed transactions of $3.1 billion, $933 million and $734 million, respectively.

Additionally, Solana’s ecosystem is in good shape, and the total value locked has risen to over $5.06 billion, the highest point since 2022. Six of the largest networks, including Jito, Kamino, Jupiter, Marinade and Raydium, achieved $1 billion in TVL.

The ongoing Solana sell-off is mostly due to increased geopolitical risks. NYT reported that Israel is considering starting a war with Iran. Such a war would likely roil inflation and push central banks to slow interest rate cuts.

Solana price may form a death cross Solana price chart | Source: TradingView

The daily chart shows that the Solana price has experienced a series of lower highs and lows since March. It also found strong support at $121.65, where it has struggled to move downwards since April 12.

The 200-day and 50-day Exponential Moving Averages are about to form a death cross as Solana approaches the 50% Fibonacci Retracement level. Such a formation will likely trigger further selling, with the initial target being $121.65. A break below this level will confirm the bearish trend and lead to further downside.