Solana faces strong resistance at $200
The price of Solana is on a downward trajectory, with strong resistance forming near $200. Bulls need to break through this level to regain momentum, but the odds seem to be stacked against them. Data from Coinglass indicates that short leveraged positions on Solana exceed $551 million, far outweighing long positions of $2.53 million. This imbalance highlights the bearish stance of the market, with traders betting on further declines.



If the bears exploit the weak support, Solana could slide towards $160.8, which remains the next critical demand zone. In the absence of buying interest, the path to recovery for SOL remains uncertain. The “memecoin” craze that once fueled Solana’s explosive rise has now turned into a significant burden, further dampening investor confidence.

Solana’s DeFi ecosystem thrives despite price struggles
Despite the bearish price action, Solana’s decentralized finance (DeFi) ecosystem is expanding at a rapid pace. Data from DeFi Llama indicates that the network has attracted $3.2 billion in stablecoin inflows, an increase of 37.3% in just 50 days.
Major protocols such as Jito and Jupiter have experienced exponential growth, with Jito's total locked value (TVL) soaring from $700 million to $2.8 billion over the past year. Jupiter's TVL surged from $210 million to $2.53 billion, a staggering increase of 1100%. Meanwhile, Solana's largest decentralized exchange, Raydium, has also seen a significant increase in trading volume, expected to reach $61 billion in December 2024.
The Solana price is at a critical juncture. Sustaining above $170 is crucial for bulls to regain control, but the lack of strong buying interest raises alarms. A decisive break above $185 could restore confidence and push SOL back toward $200. However, if selling pressure persists, a drop to $160 or lower remains a real possibility.