The crypto markets are again breaking down after closing the previous day’s trade on a bullish note. Solana’s price also touched levels close to $200, followed by a massive drawback of nearly 15%. The token displayed immense strength following the Solana-based memecoins managed to display a breadth-taking surge. This attracted massive volume over the network, while the platform does not appear to be prepared for it.
The Solana network is struggling to cope with the growing demand for memecoins, as the latest data shows a massive drop in the successful transaction rate. As per the data from Dune Analytics, the failed transactions over Solana have reached over 70%, which is the highest in history to date.
With this, the successful transaction rate has dropped to 25%, which has created despair among the market participants. While the broader market conditions have also turned bearish, there are possibilities of negatively impacting the SOL price too. The token has been experiencing serious upward pressure till now, which has compelled the price to break below $175 at the moment. Moreover, if the bulls fail to defend the support at $174, then a major descending trend could knock in.
The daily chart of SOL prices indicates the token is heading to break below the crucial support. The technicals are not in favour of bulls, as the DMI has just flashed bearish signals by validating a bearish crossover. Besides, the ADX is reaching lower support, suggesting a massive drop in the strength of the rally. Therefore, a drop to $141 may be validated if the bulls fail to trigger a rebound at this stage. Hence, the upcoming weekly trade may have a major impact on the Solana (SOL) price ahead of Bitcoin halving.