Solana Price Drops Near $200 Amid Market Volatility
Solana (SOL) is trading around $206 on Tuesday. This follows a rise over the weekend and Monday. The price faces resistance between $200 and $205. Weakness in the derivatives market and a 15% drop in staking balance suggest risks of a longer pullback.
Solana DeFi TVL and Funding Rates Fall
Solana’s DeFi ecosystem hit a record Total Value Locked (TVL) of $13.22 billion on September 14. Since then, TVL dropped sharply to $10.78 billion by Friday. On Tuesday, TVL averaged $11.23 billion but may fall more if Solana’s price drops below $200.
Many holders withdraw funds from staking to sell, increasing sell-off risks. The derivatives market shows signs of weakness. The Open Interest-weighted funding rate turned negative, signaling traders favor short positions over longs. This reflects a cautious market mood.
Technical Outlook: Possible Deeper Pullback for Solana
Solana trades below its 50-day Exponential Moving Average (EMA) at $208 after failing to break $215 on Monday. The Relative Strength Index (RSI) dropped to 44, indicating growing bearish momentum. The Moving Average Convergence Divergence (MACD) has shown a sell signal since September 21.
If Solana falls below $200, support levels to watch are the 100-day EMA at $194 and the 200-day EMA at $182. A rebound above the 50-day EMA could lead to a rise above $220 and possibly $250.
