"Solana's TVL Plummets 40%, SOL at Risk of $110 Drop"

Solana's Total Value Locked (TVL) has plummeted by 40% in recent weeks, with the price of SOL at risk of further losses, potentially dropping to $110. This significant decline in TVL, which measures the total value of assets locked into decentralized finance (DeFi) protocols on the Solana blockchain, indicates a decrease in investor confidence and network activity.

The drop in TVL is largely attributed to a significant decrease in the value locked in major DeFi protocols on the Solana network. Raydium, a popular decentralized exchange on Solana, has seen a 53% drop in TVL over the past 30 days. Other notable protocols, such as Jupiter DEX, Jito liquid staking, and Save Lending, have also experienced substantial declines in TVL, ranging from 25% to 42%.

Consequently, onchain volumes on the Solana network have also decreased significantly, falling from a weekly collection of $97 billion in early January to just $11 billion this week. This decline in activity has led to an average decrease of 20-40% in Solana's ecosystem over the past month, indicating a shift in investors' trust in the network.

The decline in Solana's TVL mirrors a broader trend of falling prices across the memecoin market. Most Solana-based memecoins have posted double-digit daily losses, with many tokens trading at 80% to 90% below their peak prices. As a result, the collective market capitalization of Solana-based memecoins has dropped by 68% in less than three months, from a peak of $25 billion in December 2024 to $8.3 billion today.

From a technical perspective, SOL's price action has completed a double-top pattern, with the price currently sitting on immediate support at $135. If this support level is breached, SOL could potentially drop to sweep the liquidity between $120 and $110, representing a 22% decline from the current price. However, the Relative Strength Index (RSI) is currently at 28, indicating oversold conditions, which could provide a good entry position for buyers.

Popular crypto analyst Gum believes that the lowest Solana's price could go would be around $110,