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Solana’s native token, SOL (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="null" target="null" text="null" title="null">SOL</a>), is down 3% on Oct. 31, amid minor corrections across the broader crypto market.&nbsp;
Data from <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="null" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="null" target="null" text="null" title="null">TradingView</a> shows SOL trading in a second bearish session at $173, after failing to hold above $180 on Oct. 30.
<figure>
 <img alt="Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Decentralized Exchange, Market Analysis, Solana" src="https://s3.cointelegraph.com/uploads/2024-10/0192e1c4-d86b-74ed-ade8-db565f5d25ac" title="">
 <figcaption style="text-align: center;">
 SOL/USD daily chart. Source: <a data-ct-non-breakable="null" href="https://www.tradingview.com/x/VcpAaXtG/" rel="null" target="null" text="null" title="https://www.tradingview.com/x/VcpAaXtG/">TradingView</a>
 </figcaption>
</figure>
Let’s look at the factors behind Solana’s bearishness today.
<h2 id="strong-decreasing-network-activity-drags-down-sol-price-strong">Decreasing network activity drags down SOL price</h2>
SOL’s latest price drop follows a decrease in onchain activity, as fewer users engage with the network, contributing to the decreasing momentum.
Data from DefiLlama reveals the <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter" rel="null" target="null" text="null" title="null">total value locked</a> (TVL) on the Solana network has decreased sharply from $7.2 billion on Oct. 27 to $6.2 billion on Oct. 31. This 13.8% drop suggests that users and developers are interacting less with the network.
<figure>
 <img alt="Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Decentralized Exchange, Market Analysis, Solana" src="https://s3.cointelegraph.com/uploads/2024-10/0192e1c5-8898-724a-be9f-a12df281be4d" title="">
 <figcaption style="text-align: center;">
 Total value locked on SOL Chain. Source: DefiLlama
 </figcaption>
</figure>
Additional data provided by Blockworks Research reveals that SOL’s price drop on Oct. 31 was preceded by a sharp decrease in the network’s economic activity. 
The chart below shows that Solana’s real economic value—all revenue sources, including base fees, and priority fees—dropped from an <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/total-economic-activity-solana-all-time-high" rel="null" target="null" text="null" title="null">all-time high of $11.1 million</a> on Oct. 24 to the current level of $7 million.&nbsp;
<figure>
 <img alt="Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Decentralized Exchange, Market Analysis, Solana" src="https://s3.cointelegraph.com/uploads/2024-10/0192e1c5-fe5c-78c9-bdb0-c7d7b208067f" title="">
 <figcaption style="text-align: center;">
 Real Economic Value of Solana. Source: Blockworks Research
 </figcaption>
</figure>
<h2 id="strong-solana-memecoins-in-the-red-strong">Solana memecoins in the red</h2>
Solana’s rally on Oct. 31 coincides with an ongoing correction in the prices of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/over-one-million-new-tokens-memecoins-launch-april-solana-base" rel="null" target="null" text="null" title="null">memecoins on its network</a>. Most are posting significant daily losses, as shown in the figure below.
<figure>
 <img alt="Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Decentralized Exchange, Market Analysis, Solana" src="https://s3.cointelegraph.com/uploads/2024-10/0192e1c6-b85e-75d9-8095-e68f50772f16" title="">
 <figcaption style="text-align: center;">
 Solana memecoins performance. Source: <a data-ct-non-breakable="null" href="https://www.coingecko.com/en/categories/solana-meme-coins" rel="null" target="null" text="null" title="https://www.coingecko.com/en/categories/solana-meme-coins">CoinGecko</a>
 </figcaption>
</figure>
For instance, Dogwifhat (<a data-ct-non-breakable="null" href="https://cointelegraph.com/dogwifhat-price-index" rel="null" target="null" text="null" title="null">WIF</a>), the leading Solana memecoin by market capitalization, has dropped by over 1.4% over a&nbsp; 24-hour timeframe. Similarly, Bonk (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bonk-price-index" rel="null" target="null" text="null" title="null">BONK</a>), Cat in a Dogs World (<a data-ct-non-breakable="null" href="https://cointelegraph.com/cat-in-a-dogs-world-price-index" rel="null" target="null" text="null" title="null">MEW</a>), and Book of Meme (<a data-ct-non-breakable="null" href="https://cointelegraph.com/book-of-meme-price-index" rel="null" target="null" text="null" title="null">BOME</a>) have declined 5.3%, 4.9% and 3.6%, respectively, over the past day, according to data from CoinGecko.
The largest daily losses were witnessed by holders of Gigachad (GIGA) and Goatsues Maximus (GOAT), which are down 8.7% and 7% on the day.
Additional data from CoinMarketCap reveals that the overall market capitalization of all Solana-based tokens has dropped from $277.9 billion on Oct. 31 to $275.2 on Oct. 31. The total trading volume has also dropped by 25.7% over the same period.
<figure>
 <img alt="Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Decentralized Exchange, Market Analysis, Solana" src="https://s3.cointelegraph.com/uploads/2024-10/0192e1c7-0c5d-7302-8c38-4a2c3faac5bc" title="">
 <figcaption style="text-align: center;">
 Total market cap and trading volume of Solana-based tokens. Source: CoinMarketCap
 </figcaption>
</figure>
Investors therefore likely reacted negatively to the dropping value and market activity of tokens within the Solana ecosystem, resulting in the drop in SOL price.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/solana-price-hits-3-month-high-as-data-hints-at-sol-rally-above-200" rel="null" target="null" text="null" title="null">Solana price hits 3-month high as data hints at SOL rally above $200</a>
<h2 id="strong-sol-s-bearish-divergence-strong">SOL’s bearish divergence</h2>
SOL’s drop today precedes a period of growing bearish divergence between its price and the relative strength index (RSI).
Notably, SOL’s price rose between Oct. 24 and Oct. 29, forming higher highs. But, in the same period, its daily RSI descended, forming lower highs.
<figure>
 <img alt="Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Decentralized Exchange, Market Analysis, Solana" src="https://s3.cointelegraph.com/uploads/2024-10/0192e1c7-aa76-70a1-b580-9ee765448901" title="">
 <figcaption style="text-align: center;">
 SOL/USD daily chart. Source: <a data-ct-non-breakable="null" href="https://www.tradingview.com/x/gdQwu2oM/" rel="null" target="null" text="null" title="https://www.tradingview.com/x/gdQwu2oM/">TradingView</a>
 </figcaption>
</figure>
As a rule of technical analysis, a divergence between rising prices and a falling RSI indicates weakness in the prevailing uptrend, prompting traders to sell more at local highs.&nbsp;
The rise in the price also led to overbought conditions on Oct. 24 when the RSI hit 72, occasioning a correction as buyer exhaustion and profit-booking set in.&nbsp;
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<advertisement></advertisement>

Why is Solana (SOL) price down today?

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