Solana (SOL) faces a 9.25% price decline today, hitting a two-week low of $168. This drop is part of a broader crypto market downturn, experiencing a 3.8% decline on April 5.
Key factors contributing to SOL’s price dip include doubts over the Federal Reserve’s interest rate cuts and reports of transaction failures on the Solana blockchain.
Recent data from Dune Analytics highlights a spike in memecoin transaction failures on the Solana network, reaching over 75% on April 4. However, there’s contention regarding the accuracy of this data, with claims that most failures were due to “bot spam.”
SOL’s price drop today coincides with corrections in top memecoins like Bonk (BONK) and Dogwifhat (WIF), which plummeted approximately 13.2% and 9% in the last 24 hours, respectively. This decline in memecoins impacts Solana’s market dynamics, with a strong correlation observed between SOL and these projects.
Additionally, improved U.S. labor market data has reduced expectations for interest rate cuts, affecting investor sentiment towards digital currencies like Solana. Consequently, Solana’s market strength has declined, with its Dominance Index (SOL.D) dropping 5% on April 5.
Technically, Solana’s price decline today aligns with a pullback within its ascending triangle pattern, indicating potential for a bounce back towards $200 or a decline towards its 50-day exponential moving average near $160.
