Solana's price has taken a significant hit, dropping over 3% in the last 24 hours to trade below $160. This downward trend has led to a market capitalization of $70.85 billion, making it the fifth-largest cryptocurrency. Despite this price drop, trading volume has increased by 65%, indicating high market activity.

Solana's Price Struggle

Solana's price has been struggling to find stable support, trading between $175 and $150 for some time. The past week has seen consistent downward pressure, resulting in a 7% drop in value. However, the Solana team has released an update, Mainnet Beta v1.18.15, to improve network performance, which could potentially support the price.

Technical Indicators

Technical indicators suggest a bearish trend, with the Relative Strength Index (RSI) approaching oversold conditions. The Moving Average Convergence Divergence (MACD) indicates a downward crossover, supporting the bearish momentum. The Bollinger Bands reflect a bearish trend, with Solana trading slightly below the lower band, potentially indicating oversold conditions. If buying pressure increases, the price could stabilize or recover.

Conclusion

Solana's price drop has raised concerns among investors. However, the update to improve network performance could potentially support the price. Technical indicators suggest a bearish trend, but oversold conditions could lead to a rebound. If the price surpasses the resistance level at $160, it could rise towards $170 and potentially approach $200 in the short term. Conversely, if downward pressure continues, the price could drop to the support level at $140 or lower.