Solana Price Nears Limit and Why Weak Volume Could Derail Its Push Above $200

Solana, dubbed the Ethereum killer, appears stuck below $200, with trading volume dropping nearly 19 percent. This critical moment has market observers questioning if the once-bullish crypto can regain momentum before further declines.

Solana Struggles to Hold $200 Support Amid Falling Market Volume

The asset with the sixth-highest market capitalization, at over $95.25 billion, has had difficulty maintaining a price above the $200 support level throughout the last seven days.

The coin may have peaked in its current bull market cycle, according to analysts. According to data compiled by CoinMarketCap, the market volume has dropped significantly, falling 18.96% to $3.32 billion. This low volume could mean that investors are losing faith in SOL, which could hurt their efforts to test new price levels.

Bearish Forces Weigh Heavily on Solana's Performance

Bearish forces are trying to prevent Solana from rising, so it looks like it's stuck in a downward spiral. Its volatility and the likelihood of a return to earlier levels have been exacerbated by each price decline in the past 30 days. Instead, SOL has settled into a footing below its prior heights.

Experts in the market are of the opinion that Solana may have a hard time posting a retracement because of the minimal trading volume. Another possibility is that the price needs a change in trading volume in order to break over the $200 level of resistance.

Record High Transactions Do Not Translate to Price Growth

There was no improvement in the pricing indicator, even if the number of daily transactions hit a record ATH with 72.8 million. The number of active addresses did not increase in tandem with the 97.8% increase in daily transactions. This stunted the increase in SOL's price.

A change in investor interest, according to some market analysts, is to blame for Solana's failure to reawaken old price heights. In order to take advantage of the current bullish market cycle, traders should look for the next profit-taking opportunity, U.Today points out.

As a result of this change, SOL is now under more selling pressure. The crypto analyst Henrik Zeberg is still bullish on SOL, but the market indexes have not shifted in his favor. According to Zeberg, Solana is likely still in consolidation and may shortly break out.

If Solana still has what it takes to stage a comeback, we will see in the next few trading days.