2 Reasons Solana (SOL) Price Could Fall to $137

The price of Solana (SOL) is currently under the microscope, with a mix of technical indicators and network activity trends fueling discussions about its future direction.

Between increasing DEX trading and challenging technical setups, SOL finds itself at a critical crossroads.

Challenges and operational potential of Solana

The emergence of new meme coins based on Solana as a popular blockchain has brought a surge in network activity, but not without distraction. Recent weeks have seen a sharp increase in failed transactions, which is a concern for users and developers alike.

While it reached a peak of 8.5 million DEX transactions on March 30, activity rose to 5.6 million as of April 4, indicating operational limitations and user frustration.

Moreover, the Average Directional Indicator (ADX) on Solana provides a clear picture of the price. With a current reading of 36, it indicates a strong bearish trend.

This short-term reading of 9 to 36 highlights bearish strength, possibly setting the stage for further price declines.

Read more: 6 Best Platforms to Buy Solana (SOL) in 2024

SOL Price Prediction: Can it bounce back to $137?

Solana's value is at a critical juncture. The latest technical patterns, including the death cross, coupled with DEX trading and strong ADX readings paint a bearish picture.

If the trend continues, SOL could see a test of the $167 support level, with a possible drop to $137, especially if operational issues persist and further shake investor confidence.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

However, if Solana can effectively overcome these operational challenges, there is a chance for a reversal of fortune. A successful resolution could pave the way for Solana's price to challenge higher resistance levels. Therefore, it may reach $205 or $210 as market sentiment improves.