Solana (SOL) price is down today, dropping 9% on November 26, amid a broader cryptocurrency market correction. SOL which reached an all-time high on November 23, has been unable to sustain its upward momentum, trading at $230. Several factors, including market-wide sell-offs, declining Solana-based token values, and bearish technical indicators, are contributing to the current downward pressure.Market-Wide Correction Impacts SOL PriceThe cryptocurrency market is experiencing a significant sell-off, with Solana joining other major cryptocurrencies in posting losses. Bitcoin (BTC), the market leader, dropped 5.8% over the last 24 hours to trade at $92,536, failing to surpass the $100,000 resistance level. Similarly, Ether (ETH) fell 1.2% to $3,360, while other top cryptocurrencies like BNB, XRP, and Dogecoin (DOGE) also recorded declines.The total cryptocurrency market capitalization fell by 5% over the past 24 hours to $3.2 trillion, signaling a broad market cooldown after an overheated rally. Analysts attribute the sell-off to high leverage levels, with CryptoQuant analyst MAC_D noting:“This correction occurred due to leverage overheating, as open interest and estimated leverage ratio reached annual highs.”Declining Solana-Based Token PerformanceSolana’s native token is facing additional bearish pressure due to underperformance in Solana-based ecosystem tokens. The total market capitalization of Solana-based tokens dropped from $347.8 billion on November 25 to $228.8 billion on November 26, a staggering 34% decline. Trading volume for these tokens surged by 43.2% during the same period, indicating heightened sell-side activity.The sharp drop in the value and activity of Solana-based tokens likely discouraged investor confidence, contributing to the decline in SOL’s price.Bearish Divergence in RSIA bearish divergence between SOL’s price and its Relative Strength Index (RSI) signals a weakening uptrend. Between November 8 and 26, SOL's price achieved higher highs, while its RSI formed lower highs, a classic technical indicator of weakening momentum.Additionally, SOL entered overbought territory on November 22 when the RSI hit 77, prompting profit-taking and buyer exhaustion. If selling pressure continues, SOL price could test support levels at $210 or potentially dip further to $185.Outlook for SOL PriceDespite the current correction, analysts believe Bitcoin’s potential to breach $100,000 could lift altcoins, including Solana, in the coming weeks. However, Solana's price recovery will likely depend on broader market stabilization and renewed strength in its ecosystem tokens.Key Takeaways:Market Correction: Bitcoin and other major cryptocurrencies are experiencing sell-offs, weighing down SOL.Ecosystem Weakness: Solana-based tokens saw a sharp decline in market cap and increased sell-off activity.Technical Indicators: A bearish RSI divergence and overbought conditions are contributing to the downward pressure.While the near-term outlook for SOL appears bearish, long-term prospects remain tied to overall market recovery and ecosystem developments.
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