Solana (SOL) price is currently under the microscope, with a mix of technical indicators and network activity trends fueling discussions about its future direction.
Amidst an increase in DEX trades and a challenging technical setup, SOL finds itself at a critical crossroads.
Challenges and Operational Capacity on Solana
The ascent as a favored blockchain for new Solana-based meme coins brought with it an uptick in network activity, but not without its drawbacks. Recent weeks saw a spike in failed transactions, a concern for users and developers alike.
Despite reaching a peak of 8.5 million DEX transactions on March 30, activity has since tapered off to 5.6 million by April 4, indicating possible operational limits and growing user frustration.
![Solana (SOL) Risks Falling to 7: An In-depth Look](https://www.bee.com/wp-content/uploads/2024/04/frc-d5d87907e68d3d913d856462e1ca11ec.png)
Moreover, the Average Directional Index (ADX) on Solana presents a stark picture for its price. With a current reading of 36, it indicates a solid bearish trend.
This uptick from a reading of 9 to 36 in a short span underscores the growing strength of the downtrend, possibly setting the stage for further price drops.
Read More: 6 Best Platforms To Buy Solana (SOL) in 2024
![Solana (SOL) Risks Falling to 7: An In-depth Look](https://www.bee.com/wp-content/uploads/2024/04/frc-08025402bbfce0d8af8be52fce8c2a95.png)
SOL Price Prediction: Can It Get Back to $137?
Solana’s price is at a crucial juncture. The recent technical patterns, including a death cross, coupled with declining DEX trades and a robust ADX reading, paint a bearish picture.
If the trend continues, SOL could see it $167 support level tested, potentially dropping to as low as $137, especially if operational issues persist and shake investor confidence further.
Read More: Solana (SOL) Price Prediction 2024/2025/2030
![Solana (SOL) Risks Falling to 7: An In-depth Look](https://www.bee.com/wp-content/uploads/2024/04/frc-123f73613b60f04702af58c043ebb5cd.png)
However, should Solana manage to effectively address these operational challenges, there is a chance for a reversal in fortunes. A successful resolution could pave the way for Solana price to challenge higher resistance levels. Therefore, it could potentially aim for $205 or even $210, as market sentiment improves.