**Solana Faces Heavy Resistance at $200**
Solana’s price is stuck in a downward trajectory, with strong resistance forming around the $200 mark. Bulls need to push past this level to regain momentum, but the odds appear stacked against them. Data from Coinglass shows that short leverage positions in Solana exceed $551 million, far outweighing long positions at $253 million. This imbalance highlights the market’s bearish stance, with traders betting on further downside.
If bears capitalize on weak support levels, Solana could slide toward $160.8, which remains the next critical demand zone. Without a surge in buying interest, SOL’s path to recovery remains uncertain. The fading meme coin hype, which once fueled Solana’s explosive rally, has now turned into a major liability, further dampening investor confidence.
**Solana’s DeFi Ecosystem Booms Despite Price Struggles**
Despite the bearish price action, Solana’s decentralized finance (DeFi) ecosystem is expanding rapidly. Data from DeFi Llama shows that the network has attracted $3.2 billion in stablecoin inflows, marking a 37.3% increase in just 50 days. Major protocols like Jito and Jupiter have experienced exponential growth, with Jito’s total value locked (TVL) skyrocketing from $700 million to $2.8 billion over the past year. Jupiter’s TVL has surged from $210 million to $2.53 billion, a staggering 1,100% jump. Meanwhile, Raydium, Solana’s largest decentralized exchange, recorded a sharp increase in trading volumes, reaching $61 billion in Dec. 2024.
Solana’s price is at a critical juncture. Holding above $170 is crucial for bulls to regain control, but the lack of strong buying interest raises red flags. A decisive break above $185 could restore confidence and push SOL back toward $200. However, if selling pressure continues, a drop to $160 or lower remains a real possibility.